Bitcoin Price Drops 2% as Glassnode Warns of BTC Fall to $88,000

Bitcoin price fell 2% over the past 24 hours to trade at $111.33 as of 3:30 a.m., while trading volume fell 31% to $50.47 billion.

Worse could be coming, according to Glassnode, which warned that if the price cannot climb back above the $113,000 cost base, a plunge to $88,000 could happen as long-term holders start unwinding their positions.

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Veteran salesmen making moves

Bitcoin is struggling to get back above $126,000 as long-term holders maintain their steady profit-taking. Glass junction #insights reveal that after months of stacking, these professionals are gradually making money, fueling the ongoing downward pressure. ➡️… pic.twitter.com/h9PDRsGags

— CryptOpus (@ImCryptOpus) October 31, 2025

If the market finds enough buyers, some analysts say a recovery toward $113,000 and higher could still be possible, but demand remains weak for now.

Trading volume has also declined as investors take a step back, waiting for clearer signals.

Bitcoin on-chain signals show a mixed picture

Data about the chain tells a story of caution, but also of some confidence in the long term. Bitcoin currency reserves hit new lows as investors withdrew coins instead of selling, suggesting a portion of holders are reluctant to exit even in tough times.

Bitcoin Exchange Reserve Source: CryptoQuant

In October, more than 200,000 BTC left trading platforms, shrinking the available supply and making every remaining coin a little scarcer.

Still, selling by nervous traders and weak demand have negatively affected the BTC price on all major exchanges. Glassnode noted that the inability to reclaim the $113,000 level could increase the risk of long-term holders turning into sellers as fear grows. As leverage disappears from the market after the October crash, whales and institutions remain cautious.

POWELL went completely insane

Markets are tilting, chaos everywhere
Funding screams, whales laugh

Retail captured, panic on every card👇

Powell keeps pushing buttons that no one asked for.

Every explanation, every hint, it’s like he’s running a stress test on the entire… pic.twitter.com/egDnCEOnvR

— FarmMyTears (@FarmMyTears) October 30, 2025

There are signs of new accumulation, especially with ETF and custody flows still positive, but these have not yet reversed the overall downward trend.

Sentiment is stuck in neutral. Investors have not fully capitulated yet and some are waiting for buy signals. Fed Chairman Jerome Powell said on October 29 that a December rate cut is far from certain, adding to the uncertainty for risky assets like Bitcoin.

BTCUSD Technical Analysis: Strong Support Tested, Bear Flag Looms

Looking at today’s price chart, Bitcoin is moving within a tight range, closing just below resistance at $113,000 and hovering near support at $105,000. Recent price action shows strong resistance that repeatedly holds back higher prices.

BTCUSD analysis source: Tradingview

If sellers push the price below the $105,000 level, it could quickly test the $95,800 low and then potentially decline further towards $88,000, Glassnode’s warning target.

Momentum indicators point to more downside risk. The Relative Strength Index (RSI) stands at 44.89, showing weak buying pressure and no sign of a rally. The MACD remains negative, with the MACD line well below the signal line, confirming the bearish trend. Price action also shows a “bear flag” pattern, a technical signal that often leads to further declines if support breaks

Investors should keep a close eye on $105,000 as a critical zone. If buyers can hold this level, Bitcoin price could attempt another move towards resistance and potentially retest $115,000. If this support fails, the $88,000 area becomes the next big target and sellers can quickly take control.

Price Prediction: Downside risks remain if support breaks

Most price models, including the latest data from Glassnode, suggest that Bitcoin is at risk of a further decline, especially if it cannot get back above $113,000 soon. The extended sell-off in October has wiped out indebted traders and roiled the markets, and without new demand the price could fall to $88,000 before real support is found.

A recovery is possible as new buyers enter the market. There are signs of accumulation, especially as foreign exchange reserves fall and some big investors hold out. Others warn that continued risk aversion, especially if more bad news comes, could push the price down further

For now, Bitcoin remains stuck below key resistance, with sellers in control. Keep a close eye on the support at $105,000. If this holds, a rebound may occur; if not, $88,000 might be next on the charts

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