Bitcoin (BTC) is struggling to return to previously important support levels. The crypto market faces significant pressure from the bears.
The following are some examples of the use of data CoinGecko reports that Bitcoin’s price has retraced by nearly 6% during the last seven days. Other major cryptocurrencies have also suffered losses of double digits, such as Ethereum, XRP and Binance Coin.
Galaxy Digital Reduces Bitcoin Target Price
A wave of margin purchases led to Bitcoin’s current high, which is slightly over $126,000. This marked a dramatic contrast from the previous bullish mood that prevailed in early October.
The initial euphoria of the cryptocurrency market was however short-lived. On October 10th, about $20 billion worth of leveraged positions on the cryptomarket were suddenly liquidated, contributing to the lackadaisical attitude among investors.
Michael Novogratz Galaxy Digital has recently been launched revised It has lowered its Bitcoin year-end price estimate to $120,000. This is a substantial drop from the prior estimate of $185,000 and the company attributes this to the “significant leverage wipeout.”
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CryptoQuant, a market analytics company, has noted that Bitcoin’s fall below its 365 day moving average of $102,000 may signal an even deeper decline. The moving average was historically used as a crucial support level in this bull-cycle, so its failure could result in a larger correction of Bitcoin’s value.
CryptoQuant’s experts have elaborated upon the conditions that Bitcoin needs to meet in order for it to reverse its trajectory and reach new heights. all-time highs. The researchers observed that Bitcoin was at the forefront of a worldwide risk-off trend, and tested $100,000 as a critical support level.
A stronger dollar as well as ongoing uncertainty regarding Federal Reserve Policy (Fed), which has dampened risk appetites in various asset classes, have contributed to this decline.
There have been approximately four sessions in which net US outflows of $1.3 billion were recorded. spot BTC ETFsThis will reverse what was one of the biggest tailwinds on the market for 2025.
It is no coincidence that the reduced demand for spot metals coincided, along with the forced deleveraging. Over $1 billion was liquidated at recent lows in a short time, before dip-buyers stepped in.
Stabilization Of ETF Flows Crucial
You can also find out more about the following: options market Dealers remain net short of gamma near the $100,000 strike. This has led to increased hedge activity at this crucial level.
If there are no more macroeconomic shocks, the $100,000 psychological mark could be a barrier to market sentiment.
The analysts have been focusing on the macroeconomic side. assert The current climate is still supportive, even if it’s a little clouded over by the government shutdown that continues in Washington. Policy clarity is still elusive.
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Federal Reserve’s 25 basis-point cut, in which some opinions were dissenting, came with a cautious tonality that was meant to push back on expectations for a further cut in December.
As the Fed’s blackout continues, markets may be more open to the idea of pausing. It would also help keep the dollar firm and the monetary policy tight. credit conditions.
CryptoQuant’s analysis indicates that for Bitcoin to continue rising, a turnaround in the outflows of exchange-traded funds and a renewed trust in risk assets is likely necessary.
The featured image is from DALL-E. Charts are from TradingView.com
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Source: www.newsbtc.com
