Bitcoin (BTCUSD) is trading sharply lower, down $4,700 (-4.3%) at $105,760, after touching an intraday low of $105,440. The decline marks the lowest level since October 17, and Bitcoin is now on track to close at its weakest level since July 1, when it settled at $105,709.
The move comes amid renewed selling pressure driven by a combination of factors:
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Hawkish Fed sentiment, with expectations for a less accommodative policy stance.
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Reports of a major liquidation, as a large holder reportedly sold roughly $600 million in Bitcoin over the weekend.
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US government shutdown is causing anxiety as it gets longer and longer.
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A general shift in market tone, with risk sentiment turning more negative across crypto assets.
From a technical perspective, Bitcoin has broken further below its 200-day moving average at $109,866, a level that has acted as a key pivot in recent months. Since October 17, price action has repeatedly tested both sides of that moving average, but today’s drop represents the widest deviation below it in weeks. Before last month’s break, the 200-day average had provided support dating back to April 21 (see green line on chart below).
Looking ahead, downside targets include the October 17 low at $103,530, followed by the psychological $100,000 level. Below that, traders will eye the 38.2% retracement of the August 2024–October 2025 rally near $96,975.
On the topside, Bitcoin would need to reclaim the 200-day moving average ($109,865) to neutralize the current bearish bias.
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