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 dropped below the 200 day SMA and fell to $104,500, amid $1 billion in crypto liquidations.

• Analysts see $88,000 as BTC’s next major support level 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 sparked a new wave of fear on the cryptocurrency market.

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, gold reaching a fresh all-time high.

The move came as a result of concerns about a looming financial crisis 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. 

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 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 Thursday’s trading at 45,952.24

According to data provided by CryptoMarketCap, this panic spread to the cryptomarket, which saw Bitcoin drop to an intraday minimum of $104,500. The total market capitalization fell 5%, to $3.58 billion. 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 The derivatives markets saw massive liquidations that pushed the 16.5% down to 16.5%.

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.

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.

The price of Bitcoin could drop to sweep up the available liquidity in this range.

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, 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 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.”

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.

The information in this article is neither investment advice nor a recommendation. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.