BlackRock $2.7B Bitcoin BTC Selloff Drags BTC Below Key $106K Support

Bitcoin (BTC) extended its slide on November 4 as reports surfaced that BlackRock had begun offloading billions in BTC holdings. The move triggered renewed selling pressure, pushing prices below a key support level near $106,000.

The flagship cryptocurrency fell 1.6% to $104,774 on Bitstamp, marking its lowest level in over two weeks. The drop coincided with heavy whale activity and fading bullish conviction across on-chain and derivatives markets.

BlackRock’s Reported BTC Dump Adds Market Stress

Crypto commentator 0xNobler claimed on X that BlackRock “just started dumping Bitcoin again”, selling 24,000 BTC worth roughly $2.75 billion. He added that the firm “keeps selling more every hour,” fueling speculation that institutional traders were trimming exposure after October’s weak close.

While the claim remains unverified by BlackRock, market reaction reflected panic typical of large-scale liquidations. Bitcoin’s sell-off intensified as traders rushed to defend lower support levels, but the effort faltered near $105,000.

The selling pressure emerged as derivatives funding rates normalized from their previous highs, indicating that leveraged traders were reducing their bullish bets. The Stochastic RSI on the daily chart entered oversold territory near 17.08, suggesting that downside momentum could soon slow but recovery remains uncertain.

Key Support Breaks, Traders Turn Cautious

Analyst IncomeSharks admitted the current setup offered “no convincing reason to buy.” In a post to X, he said the On-Balance Volume (OBV) chart, a measure of cumulative buying and selling pressure, showed no signs of accumulation.

“I want to be a bull, but I don’t see anything convincing me it’s time to buy,” he wrote, summarizing a growing sentiment among short-term traders.

Bitcoin’s daily close below $106,000 confirmed a breakdown of the multi-month support zone visible since June. Technical charts indicate that the next major demand area is situated near $101,000–$102,000, aligning with prior accumulation ranges from early summer.

Short-Term Holders Quietly Accumulate, But Bottom Unclear

On-chain data shared by Sunny Mom suggested that 1–3 month and 3–6 month short-term holders (STH) were beginning to accumulate BTC despite the correction.

“These cohorts often act as volatility drivers when their accumulation rises, prices tend to stabilize,” she wrote. The data highlighted that these wallets were gradually defending their cost basis, though accumulation remained incomplete.

Sunny Mom added that these short-term bands historically form the first line of defense in bull markets. However, she noted that “smart money” might still be waiting for deeper capitulation before re-entering. This aligns with a broader view that the current drawdown may not yet mark the cycle’s local bottom.

Market Outlook: $150K Odds Drop Sharply

The mood turned cautious as futures traders on Kalshi priced the odds of Bitcoin reaching $150,000 before April 2026 at just 36%, down from earlier highs of nearly 50%. The drop underscored fading confidence in a near-term rally amid tightening liquidity and institutional repositioning.

Despite recent ETF inflows earlier in 2025, the broader picture remains fragile. Bitcoin’s repeated failures to sustain above $120,000 through October have now translated into structural weakness below $106,000.

Technical Setup Signals Possible Relief, Not Reversal

The daily chart shows that Bitcoin has been forming a descending channel since early October. With the Stochastic RSI below 20, the market appears oversold, hinting at a potential relief bounce. However, a decisive reversal remains elusive without renewed volume confirmation.

Analysts say reclaiming $108,000 would be the first step toward rebuilding momentum. Failure to do so may open the path toward $100,000 — a psychological level that could attract long-term buyers.

Until then, traders remain cautious. The lack of bullish divergence, muted OBV readings, and falling open interest indicate that the market remains in defensive mode.

Capitulation or Calm Before the Storm?

Bitcoin’s breach of $106,000 marks a critical inflection point in the current cycle. Institutional activity, whether confirmed or speculative, continues to shape short-term sentiment.

If short-term holders persist in accumulation and BlackRock’s selling pressure fades, BTC may stabilize near $104,000. However, with derivatives positioning turning defensive, the market’s next move depends on whether buyers re-emerge before the $100,000 threshold is reached.

Fornow, Bitcoin remains caught between institutional outflows and cautious accumulation — a battle that will define November’s trend.