Bitcoin has broken below the critical 200-day simple moving average of $109,380, signaling potential weakness early as the dollar index (DXY) continues to gain momentum.
The breakdown could trigger more selling from chart-focused traders, potentially pushing Bitcoin towards $100,000 or below. The dollar index, which measures the US dollar against major fiat currencies, climbed to 99.72 – the highest since August 1 – fueled by Federal Reserve Chairman Jerome Powell’s comments cutting back on a December rate hike and the very accommodative stance of the Bank of Japan, which weakened the yen.
Interestingly, Bitcoin’s fall came despite a positive development in US-China trade relations. President Donald Trump and Chinese President Xi Jinping reached an early agreement to cut tariffs – reducing US tariffs on Chinese goods from 57% to 47% – and boost trade. The deal also includes Beijing’s commitment to secure rare earth supplies, buy US soybeans, and crack down on fentanyl trafficking. However, this positive outcome failed to ignite a crypto rally, suggesting underlying demand weakness.
Other cryptocurrencies are also under pressure: looks poised to confirm a “death cross” with the 50- and 200-day simple moving averages in the coming days, while Solana weak on the other hand Strong initial surge for Bitwise’s Sol Spot ETF.
