Bitcoin crashes below 100,000, with 2 billion in liquidations! ZK and ICP rise against the trend by 20% to become safe havens

As Bitcoin first fell below $100,000 since June 23, ZKsync (ZK) and Internet Computer (ICP) remained stable amid the overall market correction. This big dump resulted in $2 billion in liquidations, with crypto markets losing $2.07 billion over the past 24 hours, affecting 479,792 traders. Long positions were liquidated to the tune of $1.67 billion.

Bitcoin Falls Below $100K Triggering $2 Billion Liquidation Wave

(Source: Trading View)

As of November 5, Bitcoin’s trading price dropped below $100,000 for the third consecutive day. The death cross of the 50-day and 100-day exponential moving averages (EMA) confirmed a short-term bearish dominance. Bitcoin’s immediate support level is at $98,200, the low point on June 22. If Bitcoin breaks below this level, the downtrend could test the April 28 low of $92,800.

From a technical perspective, the ongoing correction has shifted momentum to bearish, as the Moving Average Convergence Divergence (MACD) has extended downward from the signal line and reversed. Meanwhile, the continuous rise of the red histogram bars below the zero line indicates increasing bearish momentum. Selling pressure has pushed the Relative Strength Index (RSI) down to 29, breaking into oversold territory. If RSI further declines into oversold levels, Bitcoin’s price could continue to fall.

However, an oversold RSI also suggests the possibility of a technical rebound. Bitcoin’s price might bounce back and test the resistance level at $105,250 (which has now turned into support), the low point on July 1. A rebound from current levels to $105,250 implies about a 5% upside, a common occurrence under oversold conditions.

CoinGlass data shows that in the past 24 hours, the crypto market lost $2.07 billion, impacting 479,792 traders. Of the total liquidation amount, longs accounted for $1.67 billion, far exceeding the $389.97 million in shorts. This indicates a large number of long positions were forcibly closed, reflecting a bearish market sentiment. Additionally, the largest single liquidation event occurred on the HTX exchange for the BTC/USDT trading pair, valued at $47.87 million.

Key Technical Levels and Liquidation Data for Bitcoin

Current Price: Below $100,000 (third consecutive day decline)

Technical Signals: Death cross of 50-day and 100-day EMAs, MACD downward reversal

RSI: 29 (oversold, potential for a technical rebound)

Support Levels: $98,200 (June low), $92,800 (April low)

Resistance Level: $105,250 (July low turned resistance)

Total Liquidation: $2.07 billion (impacting 479,792 traders)

Long Liquidations: $1.67 billion vs. short $389.97 million

This scale of liquidation ranks second only to the $20 billion liquidation event on October 10, 2025, indicating the market is experiencing another intense deleveraging. When a large number of leveraged longs are liquidated, a chain reaction can occur: falling prices trigger margin calls, forced liquidations generate selling pressure, which further drives prices down, causing more liquidations. This vicious cycle continues until leverage is sufficiently cleared, prices reach strong support levels, or large buy orders appear to halt the decline.

ZKsync Gains 80% Weekly, Holds 200-Day Moving Average as a Safe Haven

(Source: Trading View)

After rising 20% on Tuesday, ZKsync paused above the 200-day moving average. Based on Ethereum’s layer-2 governance token, ZKsync is adjusting its development direction to deliver practical application value. Its founder Alex Gluchowski posted an article on X on Tuesday, proposing that governance-centric networks can evolve into an incorruptible economy. The proposal emphasizes the need for a token model that can adapt and develop to accommodate ongoing private modular chains “Prividium” and cross-chain interoperability “Elastic Chain.”

As of the report, ZK’s price on Tuesday was above $0.0600, maintaining the 200-day moving average and an 80% weekly gain. This contrarian performance amid the overall market crash is rare, indicating independent buying support beyond the broader market. An 80% weekly increase among mainstream tokens is extraordinary, typically driven by major positive news or technical breakthroughs.

If the governance token falls below the 200-day moving average, it could test the 100-day moving average near the $0.05000 psychological level. Holding this long-term trend indicator suggests the overall trend remains upward. The RSI stands at 66, near overbought territory, indicating strong buying pressure. If RSI drops back toward the midline, it could signal waning bullish interest, and ZK might face further correction. The MACD and its signal line also continue upward, confirming bullish momentum.

From an upward perspective, if ZK surpasses the August 14 high of $0.07631, the rally could extend toward the March 24 high of $0.08300, representing an additional 30-35% upside from current levels. ZKsync’s contrarian strength may stem from its strategic shift “from governance to utility.” As the market questions the value of pure governance tokens, projects that offer practical applications tend to stand out.

Development of Prividium as a private modular chain for enterprise privacy computing and Elastic Chain for cross-chain interoperability adds new utility to the ZK token. These advancements could create value capture mechanisms beyond governance, such as serving as a bridge fuel, a payment tool for enterprise services, or a protocol revenue share token.

Internet Computer Shifts from Governance to Utility in Strategic Transition

(Source: Trading View)

Internet Computer (ICP) declined 6% on Wednesday as the project seeks to transition from a governance token to a real-world utility token. As of Wednesday, ICP’s price slightly fell nearly 4%, testing the $5 level and the 200-day moving average. If ICP’s price ultimately breaks below this moving average, it could further decline toward the 100-day moving average at $4.311.

However, similar to ZKsync, momentum indicators on the daily chart show strong buying pressure. The RSI fluctuates around 67, below overbought levels, while the MACD and its signal line remain on a steady upward trend. On the positive side, if ICP closes above the July 21 high of $6.255, the rally could extend to the February 12 high of $7.478.

Both Internet Computer and ZKsync are seeking to shift from governance tokens to utility tokens. This strategic transition reflects a broader market trend: the narrative around pure governance tokens is losing effectiveness. Early projects issued governance tokens claiming holders could vote on protocol development. However, in practice, most token holders show little interest in governance, with very low voting participation. Moreover, governance rights are hard to value, and investors are more concerned with whether tokens can capture protocol-generated value.

Shifting from governance to utility means tokens will gain new functions: as a payment method for network services, as a staked asset earning returns, as a ticket to access premium features, or as a certificate of protocol revenue sharing. These practical utilities provide a more solid valuation basis and give holders reasons beyond governance to hold.

Capital Rotation Logic and Alternative Tokens Breakout

The contrarian performance of ZK and ICP reveals an important market dynamic: capital rotation. When Bitcoin consolidates or declines from highs, some funds flow into relatively undervalued alternative tokens with unique narratives or technological progress. This rotation occurs in every bull market phase, typically in stages: Bitcoin leads the rally attracting capital, large altcoins like Ether follow, mid-cap projects start performing, and finally small-cap and Meme coins surge.

Currently, ZK and ICP may be entering the “mid-cap projects start to perform” phase. They are not new projects; they have established technology and community bases, but their market caps are still smaller relative to Bitcoin and Ether, offering greater upside potential. When investors believe Bitcoin will struggle to break through short-term or Ether’s performance stalls, they look for promising targets. ZK and ICP’s technological progress and strategic shifts make them candidates.

From a risk-reward perspective, when Bitcoin is near $100,000, even a move to a new all-time high of $125,800 yields only about 25% gains. In contrast, ZK’s rise from $0.06 to $0.083 is approximately 38%, and ICP’s from $5 to $7.478 is about 49%. This higher potential return attracts risk-tolerant investors.

However, alternative tokens are more volatile. During bear markets, their declines are often multiples of Bitcoin’s. Although ZK and ICP are performing strongly now, if Bitcoin falls below $92,800, triggering widespread panic, they may not be immune. Investors should set stricter stop-losses when chasing alternative tokens and avoid ignoring systemic risks due to short-term contrarian gains.

Technically, both ZK and ICP have held the critical support at the 200-day moving average, with RSI around 66-67 indicating strong but not excessive buying, and MACD maintaining an upward trend. These configurations suggest room for further gains. Breaking recent highs could trigger a new upward cycle, but only if Bitcoin stabilizes. If Bitcoin continues to fall sharply, even strong technicals may not sustain independent rallies for alternative tokens.

For investors, the current environment offers interesting choices: buy the dip in mainstream coins when Bitcoin is oversold, or chase the momentum of alternative tokens like ZK and ICP. The decision depends on risk appetite and time horizon. Conservative investors should wait until Bitcoin stabilizes before acting. Aggressive traders might allocate small positions to alternative tokens with strict stop-losses. The most prudent approach could be diversified: hold Bitcoin for long-term stability while allocating some funds to alternative tokens to catch rotation opportunities.