Bitcoin is within the USD 3,000 range, approaching its lowest price since June and risking losing the USD 0,000 support. The government shutdown in the US keeps investors away from risk. Settlements remain high at over USD $1.3 billion.
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- Bitcoin is within the range of USD $103,000, approaching its lowest price since June.
- Liquidations in the crypto market remain high at over USD $1.3 billion in 24 hours.
- Fear in the market: The government shutdown in the US keeps investors away from risk.
- Bitcoin risks losing the key support of USD $100,000, end of the bullish cycle?
Bitcoin (BTC) extended its losing streak on Tuesday by plummeting to a local low of $103,656 in the early morning hours, marking its lowest level since June, when the cryptocurrency retreated towards $100,000.
According to data from CoinGeckoBTC has lost 3.6% in the last 24 hours and is currently trading just below $104,000, in a timid recovery from the lows recorded earlier. The current price is almost 18% below its all-time high, above $126,000, reached last month.
October, traditionally a bullish month for Bitcointook place amid turbulence and selling pressures in the crypto market. Although the flagship cryptocurrency started the period with a new record on the charts, the milestone gave way to an abrupt correction. The month closed with a 3.7% drop for BTC, breaking the streak of monthly gains associated with colloquially called “Uptober.”
Settlements over USD $1,000 million
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Liquidations of more than $1 billion were recorded in the crypto ecosystem on Monday, an echo of the massive collapse of more than $19 billion in a single day last month, which dragged BTC below $105,000 in mid-October.
“The October 10 sell-off left many pricing inefficiencies that made another correction inevitable.“commented Gabriel Selby, head of research at CF Benchmarksproperty of Krakensuggesting that the current move likely reflects a technical rebalancing after earlier volatility.
This Tuesday, settlements remain high. According to data from Coinglassthe market has USD $1.3 billion in settlements in the last 24 hours. Of that figure, almost USD $1.2 billion correspond to long positions (bullish bets), affecting 334,953 operators who saw their positions abruptly closed.
Investors avoid risk amid government shutdown
The market appears fragile due to political uncertainty in the United States. The partial federal government shutdown – which this Tuesday matches the length of the 2018-2019 shutdown and is shaping up to be one of the longest in history – is putting additional pressure on risk assets, including Bitcoin and its sister cryptocurrencies.
Analysts CoinDesk warn that institutional paralysis could prolong volatility, while The Block underlines the structural weakness revealed by the cascading liquidations, highlighting persistent ETF outflows, selling by long-term holders and a broader risk climate as factors that continue to pressure the market.
On November 3, the exchange-traded funds (ETFs) of Bitcoin spot markets in the US recorded USD $186.5 million in net outflows, extending negative capital flows for a fourth consecutive day, according to data from SoSoValue.
While, Crypto Fear & Greed index fell to 27its lowest reading in weeks, indicating a widespread feeling of fear among cryptocurrency investors. “There has been a lot of fear in the market since the big sell-off that occurred“explained Nicolai Sondergaard, research analyst at Nansena The Blockon the cautious sentiment since the October crash.
“Combined with the current government shutdown and the attention paid by Crypto Twitter to the fact that the price follows global liquidity, many participants have chosen to avoid the risk“Sondergaard added.
Bitcoin at risk of falling below USD $100,000
If the selling pressure persists, Bitcoin runs the risk of falling below six digits, a psychological threshold that has not been observed since June, when tensions between Iran and the United States broke out, temporarily slowing the crypto rally. Investors are cautiously observing the next movements, in a context where the correlation with traditional markets intensifies.
“The market is in a fragile state“said the analysts of Bitfinex to the aforementioned news outlet. “Unless price decisively recovers above this range, time becomes a growing headwind for bulls.“.
Article written with the help of AI, edited by DailyBitcoin
Image from Unsplash
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