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

The key takeaways

• As auto-sector bankruptcies revealed risky loans and financial stocks fell, the US regional banks were under pressure.

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

• Analysts see $88,000 as a significant level of support for BTC if $104,000 doesn’t hold. 

BitcoinBTC() fell to $104,000 during a second Black Friday as signs of stress in the US regional banking system triggered another 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 were on the rise. gold reaching a fresh all-time high.

It came shortly after fears of a financial crisis in the US erupted, as regional banks were under stress due to their exposure to two bankruptcy cases in the automotive sector. 

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. 

The failures revealed risky lending, especially in the private credit market, causing fears of a contagion. 

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 price of $104,500. Total crypto market capitalization also dropped by 5% at $3.58 trillion. Cointelegraph Markets Pro You can also find out more about the following: 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 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. EtherETHLong liquidations accounted for $196.3 million of the total.

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 it stages 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,” The analyst Block_Diversity Post a X in a comment. 

A chart accompanied the article, which highlighted the key levels on the daily graph, such as the last Friday low for Binance at around $101,000. Also, the demand zones are around $95,000 and $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.”

You can also read about the advantages of using 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.

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.