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

The key takeaways

• 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. 

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 a new wave of risk-aversion in the crypto markets.

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 were going up. gold reaching a fresh all-time high.

It came shortly after fears of a financial meltdown in the US erupted. Two bankruptcies within the automotive sector had put regional banks in a difficult position. 

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

First Brands Group of Ohio, an auto parts distributor with $10 billion liabilities and Tricolor Holdings with a $1 billion subprime loan, both filed for bankruptcy at the end of September. 

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

Zions stock fell 13% when it announced that the company would incur a loss of $50 million in its third quarter due to two loans made by California. 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.

According to data provided by CryptoMarketCap, this panic spread to the cryptomarket, driving Bitcoin down to a low intraday of $104,500. The total market capitalization dropped 5%, to $3.58 billion. Cointelegraph Markets Pro The following are some examples of how to get started: TradingView. 

Bitcoin’s value plummets below $100,000

Bitcoin’s decline on Friday has extended its deviation from the Oct. 6, 2016 high. all-time high of $126,000 The derivatives markets saw massive liquidations that pushed the 16.5% down to a record low.

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. Ether (also known as Ether) is a cryptocurrency.ETHLong liquidations accounted for $196.3 millions of the total.

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 staging a sustainable recovery.

How low will Bitcoin prices 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 Post X in a comment. 

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 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,” BTC’s price could rebound from the current levels in a short time.

This article contains no investment recommendations or advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.