Bitcoin fell below a key support level preventing a slide toward $100,000, amid weakening momentum in tech stocks.
The leading cryptocurrency fell below $106,000 during Asian trading hours, breaking through a level that has offered support several times in recent weeks, according to Coindesk data. Major altcoins like ether , and Solana with sol sliding to $157, the lowest since August 3. Ether also fell to the lowest since August, with a bearish cross of key moving averages pointing to strengthening downside momentum and XRP hitting a three-week low.
BTC’s breakout is focused on the $100,000-$101,000 area, according to Markus Thielen, founder of 10x Research. A breach there could open the door to a deeper test near $94,000, or even a full retracement to $85,000, the maximum pain zone also aligned with strong support in the chain, Thielen said in a note to clients.
“While such a move would be extreme, downside risk remains contained as long as Bitcoin holds above the existing downtrend line,” he added.
The price action of BTC follows the avoidance of the odds of a rapid rate cut by the fed and signs of a bullish turnaround in the dollar index, which tracks the value of the greenback against the major currencies.
Moreover, there are signs of over-boring in the so-called “Magnificent 7” stocks—Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla—commonly seen among major top stocks.
“The put-call skew in the Mag7 complex inverted for the first time since December of last year (ie, implied volatility of the calls traded). This phenomenon only happened a few times. The move suggests investors are over-positioned for continued upside,” analyst Neil Sethi told X, citing Goldman Sachs.
“Historically, low skew readings tend to coincide with short-term consolidation or reversals such as optimism optimizations,” Sethi added.
At the same time, Oracle-linked credit default swaps, which measure the cost of insuring against a potential default, advanced following AI’s massive third-quarter investment disclosure—reaching levels not seen outside of periods of significant macro stress.
This, according to some analysts, represents investor anxiety about emerging AI spending. AI Optimism is one of the main drivers of the bull market in both stocks and broader risk assets, including cryptocurrencies, since 2023.
All things considered, bulls may be better off being cautious rather than overzealous.
