Bitcoin has fallen below a key support level that had held back a decline toward $100,000 amid weakening momentum in tech stocks.
The leading cryptocurrency fell below $106,000 in Asian hours, penetrating the level that had offered support several times in recent weeks, according to CoinDesk data. Major altcoins such as ether , and solana with SOL sliding to $157, its lowest since August 3. Ether also fell to its lowest since August, with a cross of key moving averages pointing to strengthening downside momentum, and XRP hit a three-week low.
BTC’s split shifts focus to the $100,000-$101,000 range, according to Markus Thielen, founder of 10x Research. A breach of that could open the door to a deeper test near $94,000, or even a full retracement toward $85,000, the maximum pain zone that also aligns with strong on-chain support, Thielen said in a note to clients.
“While such a move would be extreme, downside risk remains contained as long as bitcoin remains above its current downtrend line,” he added.
BTC’s dismal price action follows diminishing odds for swift Fed rate cuts and signs of a bullish turn in the dollar index, which tracks the greenback’s value against major currencies.
Mag 7 crooked flips
Furthermore, there are signs of excess appetite in the so-called “Magnificent 7” stocks – Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla – which are typically seen at the major market tops.
“The put-call bias in the Mag7 complex reversed for the first time since last December (ie implied volatility of calls traded over puts). This phenomenon has only happened a handful of times. The move implies that investors are largely positioned for continued upside,” said analyst Neil Sethi at X, citing Goldman Sachs.
“Historically, such low biases have tended to coincide with short-term consolidation or reversals when optimism peaks,” Sethi added.
Oracle CDS Increases
Meanwhile, the credit default swap (CDS) tied to Oracle, which measures the cost of insuring against a potential default, has soared following the company’s massive AI investments in the third quarter – reaching levels not seen outside of periods of significant macro stress.
This, according to some analysts, represents investor anxiety about booming AI spending. AI optimism has been one of the main drivers behind the bull market in both stocks and broader risk assets, including cryptocurrencies, since 2023.
All things considered, Taurus may be better off being cautious rather than overly exuberant.
