This weekend, Bitcoin dipped under $110,000, currently trading around $109,223, marking a fresh bout of volatility in the crypto space. The decline comes amid large liquidations in leveraged positions and mounting macroeconomic pressures.
The sell-off was partly triggered by the expiration of over $17 to $22 billion in crypto options contracts, which forced many leveraged long positions to unwind. Add to that concerns about the strength of the U.S. dollar, shifting Fed signals, and cooling inflows—all tightening the noose on risk assets like Bitcoin.
Interestingly, even as prices slid, spot buyers reemerged at lower levels, hinting at a buffer against a more aggressive fall. Nevertheless, technical charts show Bitcoin has broken below its 50-day moving average, and momentum indicators are leaning toward bearishness. Key support zones now sit around $107,000, while resistance looms near $117,000 – $118,000.
For now, the narrative is one of caution. The decline tests whether Bitcoin’s recent rally was overextended or simply experiencing a healthy pullback. If buyers fail to defend the current levels, further downside toward the $105,000 region may be in store. Yet if rebound momentum returns, a retest of the upper resistance zones could reignite optimism.
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