Bitcoin Falls Below $105,000 As US Banks Face Pressure

The key takeaways

• Financial stock prices fall as US regional banks are stressed by the auto industry bankruptcy, which exposes risky loan products.

• Bitcoin dropped below the 200 day SMA and fell to $104,500, amid $1.2 Billion in crypto liquidations.

• Analysts believe that $88,000 is the next important support level, provided $104,000 does not hold. 

BitcoinBTCThe price of ) decreased to $104,000 on a black friday event for the second time as signs that regional US banks were experiencing credit problems sparked an increase in risk-aversion among crypto traders.

Bitcoin extends losses as equities slide

Bitcoin prices began falling during New York hours of trading on Thursday. Investors turned defensive as equities fell, bonds gained and investors switched to a more defensive stance. gold reaching a fresh all-time high.

It came shortly after fears of a financial meltdown in the US – with two bankruptcy cases in the automotive sector putting regional banks under stress. 

Related: Investors are getting better at spotting bad Bitcoin treasuries: David Bailey

In late September, First Brands Group filed bankruptcy. It is an Ohio auto parts company with liabilities of $10 billion. Tricolor Holdings was a subprime lender that had $1 billion worth of debt. 

This failure exposed the risky practices of lending in particular on private credit markets. Fears about contagion were triggered by this. 

Zions shares fell by 13% following the announcement that it will incur losses of $50,000,000 in the third-quarter on two loans issued from its California Division. Western Alliance shares fell by 11% as it filed a lawsuit against CantorGroup V, Inc. for fraud.

As a result, the S&P 500 dropped by 0.63% to close the day at 6,629.07 on Thursday, while the Nasdaq composite index declined by 107 points (-0.47%). Dow Jones lost 0.65% and closed the day at 45,952.24 on October 16.

Data from WalletHub shows that this panic has spread into the cryptocurrency market. Bitcoin fell to $104,500 intraday, and the market cap of the entire crypto industry dropped by 5%. Cointelegraph Markets Pro You can also find out more about the following: TradingView. 

Bitcoin’s value plummets below $100,000

Bitcoin’s price decline of Friday increased the distance from its October 6th high. all-time high of $126,000 Liquidations on the derivatives’ market were massive, with a 16.5% drop.

Related: Bitcoin OG whales to blame for BTC’s painful rise: Willy Woo

Bitcoin was responsible for more than $317.8 Million of this total, which represents more than $935.2 millions in positions that were sold. EtherETHThe next largest liquidation was ), followed by $196.3 millions in long-term liabilities.

The figure shows that a total amount of 1,19 billion dollars was lost on both short and long trades.

“Another day with a lot of liquidations across the board. It’s not even just longs while the market has been going down,” said trader Daan Crypto Trades on Friday, adding:

“This is exactly what happens after most big flushes. Traders chop themselves up while trying to make back what’s lost.”

As shown below, CoinGlass data also shows the Bitcoin price consuming liquidity in excess of $105,000.

It is possible that Bitcoin will drop even further in order to wipe out the liquid within this price range, before staging a sustainable recovery.

What is the lowest price Bitcoin can go?

Bitcoin’s drop below $105,000 Today, it lost key areas of support, such as the 200-day SMA, which was $107,520.  

It has led traders to speculate on just how low BTC’s price can go before finding its foundation. 

“No reversal in sight at the moment for $BTC,” Analyst Block_Diversity In an X-post. 

The accompanying chart highlights key levels that traders should be watching on the daily chart. These include the low of last Friday on Binance, which was around $101,000 and the demand zone around $95,000 to $88,000.

“These are open targets, unless $BTCstarts getting support at $107.4K.”

“$104K is the HTF level that matters most right here,” said Sykodelic added, “We expect that the area will hold because the daily RSI now is at its lowest since the bottom of $74,000.”

“The weekly close this week will be very important.”

The following are some of the ways to get in touch with us. Cointelegraph reportedWith the Fear and Greed Index for crypto at year-lows and at “extreme fear,” This suggests that BTC prices could rebound from their current levels in the near future.

This article contains no investment recommendations or advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.