Bitcoin plummeted below $105,000 as US regional banks feared it would cause market turmoil. Traders are keeping an eye on the $100,000 support amid rising economic uncertainty.
Banking stress hits cryptocurrencies and altcoins. While gold has soared, Bitcoin has struggled, fueling debate over the credibility of digital gold.
Bitcoin prices fell below $105,000 on Friday, the lowest since June. The decline was due to stress in US regional banks fueling unrest, similar to March 2023, when a banking crisis triggered a sharp decline in cryptocurrencies before a rebound. Traders are currently eyeing the $100,000 level as important support. Some have warned that a failure could send Bitcoin further down toward $98,000.
The banking industry’s woes spill over into cryptocurrencies.
Concerns about US local banks are hitting both traditional and crypto markets. Bank stocks began to fall in a pattern reminiscent of last year, causing a ripple effect across cryptocurrencies. Bitcoin’s previous support levels, including the daily moving average, failed to hold, and the price fell to the 200-day moving average for the first time in more than six months. Traders remain divided, with some expecting a rebound above $110,000, while others predict more pain before relief arrives.
Trader’s Watch Price Pattern
Analysts are focused on short-term trends. Some traders took notice of attempts to “fill in” the candlestick wicks on last week’s chart, briefly sending Bitcoin as high as $102,000 on Binance. If the $108,000 level does not hold, weak support will emerge between $101,000 and $102,000. The market as a whole remains nervous due to global economic pressures such as the US-China trade friction.
Altcoins lose ground
The Altcoin Season Index also reflects changes in market sentiment. On October 17th, it plummeted to 25 from 78 a month earlier, signaling a return to Bitcoin. The index averaged 35 over the past week, and only about 25 of the top 100 cryptocurrencies outperformed Bitcoin over the past 90 days. The move shows that investors prefer Bitcoin over altcoins amid renewed market volatility.
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gold vs bitcoin
While Bitcoin struggles, gold continues to hit new highs, attracting investors looking for safety. Bitcoin critic Peter Schiff predicted that gold could reach $1 million per ounce before Bitcoin hits the same milestone. He argues that Bitcoin has yet to prove itself as a reliable alternative to the US dollar or digital gold. However, some traders see this as a short-term phase and expect money to return from gold to Bitcoin.
Current market sentiment
The current market is a mix of caution and opportunity. While banking stress is putting pressure on Bitcoin and the broader crypto market, gold remains a safe-haven asset. Traders are closely monitoring Bitcoin’s key support levels and the ongoing rotation between gold and cryptocurrencies. The next few days will reveal whether Bitcoin can sustain above $100,000 or continue with last year’s decline.
