Why BTC suddenly plunges to around $101,000?

[Redator]

Friday's sell-off, according to many observers, was linked to Binance—one of the world's largest cryptocurrency exchanges—where most of the liquidations took place.

There are many versions circulating online about why Bitcoin dropped to $101,000. One of the most compelling theories, in my view, points to issues on Binance itself.

According to one report, the collateral for positions on Binance was being evaluated using its own internal order book data rather than external price oracles. When Binance announced on October 6 that it would be switching to oracle-based pricing, it gave a select group of traders enough time for a coordinated attack. During that transition period, organized actors reportedly began manipulating Binance's order book. The resulting forced liquidations triggered mass sales of BTC, ETH, and altcoins. Other exchanges, through bots and cross-market algorithms, mimicked the drop—leading to a cascade of selling across the crypto market.

However, this interpretation raises several questions and requires deeper analysis. First and foremost, the claim that the order book was manipulated must be backed by credible evidence, not speculation. Specific accounts allegedly involved in the attack would need to be identified, and any unusual trading volumes or price anomalies during the timeframe should be thoroughly analyzed.

Moreover, while switching to oracle-based pricing is certainly a step toward increased transparency and platform safety, it does not fully eliminate the risk of manipulation. Oracles themselves can be exploited, and delays in the information they deliver can give certain traders unfair advantages.

Finally, more fundamental macroeconomic events must also be considered—such as the abrupt U.S. announcement of 100% tariffs on Chinese goods. This news sparked a sharp sell-off in global equity markets, which in turn weighed heavily on the crypto space.

Trading recommendations

Buyers of Bitcoin are currently aiming to reclaim the $116,300 level. A breakout here would open a clear path to $118,400, and from there to $120,600. The most distant target is the $122,400 area—breaking above this level would indicate renewed bullish momentum. In the event of further declines, buyer interest is expected around $114,200. A move below this level could send BTC quickly down to $112,800, followed by $111,200 as the next major support zone.

As for Ethereum, a solid consolidation above $4,169 opens the path to $4,244. The furthest upside objective is the $4,318 level—surpassing it would confirm increased buyer interest and further reinforcement of the uptrend. If Ethereum falls lower, buyers are expected at $4,061. Dropping below this area could push ETH toward $3,942, with the most distant support around $3,827.

What we see on the chart:

- Red lines indicate support and resistance levels where either a price slowdown or a strong move is expected;

- Green lines represent the 50-day moving average;

- Blue lines represent the 100-day moving average;

- Light green lines represent the 200-day moving average.

Generally, a crossover or price test of these moving averages either halts market momentum or sets a new directional impulse.

The material has been provided by InstaForex Company - www.instaforex.com