Bitcoin drops below $105,000 due to pressure from US banks

Takeaways from the conference:

• Financial stock prices fell as a result of the stress on US regional banks caused by auto industry bankruptcies.

• Bitcoin has fallen below its 200-day SMA to just $104,500 in the face of $1.2 billion worth of crypto liquidations.

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

BitcoinBTC() fell to $104,000 during a second Black Friday as signs of stress in the US regional banking system sparked a new wave of fear on the cryptocurrency market.

Bitcoin extends losses as equities slide

Bitcoin began to drop during New York’s trading hours Thursday, as investors became defensive. Equities were down, bonds up, and bonds down. gold reaching a fresh all-time high.

The move came as a result of concerns about upcoming financial instability in the US. Regional banks were under pressure because they had been exposed to the two auto-sector bankruptcies. 

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 stock fell 11% following a suit filed by the company alleging fraud committed by Cantor group V, LLC.

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 Index lost 0.65% on Thursday to finish the day at 45952.24

Data from WalletHub shows that this panic has spread into the cryptocurrency market. Bitcoin fell to an intraday minimum of $104,500. Total crypto market capitalization dropped by 5% and is now $3.58 trillion. Cointelegraph Markets Pro The following are some examples of how to get started: TradingView. 

Bitcoins lose all liquidity when they fall below $10,000

Bitcoin’s decline on Friday has extended its deviation from the Oct. 6, 2016 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 accounted for 317,8 millions dollars of the $935.2 Million in liquidated long positions. EtherETHThe next largest liquidation was ), followed by $196.3 million.

As shown below, the total loss on the short- and long-term positions was $1,19 billion.

“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.”

According to CoinGlass, additional data shows that Bitcoin prices are eroding liquidity at around $105,000. However, as the graph below illustrates more orders remain at $103,500.

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

What is the lowest price Bitcoin can go?

Bitcoin’s drop below $105,000 It lost support in key areas on Friday including the 200 day SMA of $107 520.  

The traders are now speculating on how low BTC will fall before finding its feet. 

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

A chart accompanied the article, highlighting key levels for traders to monitor on the daily charts, such as the last Friday low at Binance of around $101,000. Also, the areas where demand is highest are around $95,000, $88,000, and around the previous week’s lowest level.

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

“$104K is the HTF level that matters most right here,” said Sykodelic and fellow analyst Sykodelic both added that this area is expected to remain stable, as the daily RSI has now reached its lowest level since $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 reported, with the crypto Fear & Greed Index at yearly lows and at “extreme fear,” It is possible that the price of BTC could rise in the near future from its current level.

The article is not intended to provide investment advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making any kind of decision.