Bitcoin has broken below the critical 200-day simple moving average of $109,380, signaling potential weakness ahead 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 lower. The dollar index, which measures the U.S. dollar against major fiat currencies, climbed to 99.72 – the highest since Aug. 1 – driven by hawkish comments from Federal Reserve Chairman Jerome Powell that played down a December rate hike and the Bank of Japan’s very dovish stance, which weakened the yen.
Interestingly, bitcoin’s decline comes despite positive developments in US-China trade relations. President Donald Trump and China’s President Xi Jinping reached an early agreement to lower tariffs – reducing US tariffs on Chinese goods from 57% to 47% – and increase trade. The agreement also includes Beijing’s commitment to secure supplies of rare earths, buy US soybeans and crack down on the fentanyl trade. Still, this positive result failed to ignite a crypto rally, suggesting underlying demand weakness.
Other cryptocurrencies are also under pressure: looked to confirm a “death cross” with its 50- and 200-day simple moving averages in the coming days, while solana weakened despite strong initial uptake for Bitwise’s SOL spot ETF.
