Key points:
Bitcoin charts indicate a potential decline to $103,800 and a final dip below $100,000 as the most probable outcome in the near term.
Investors express concerns that the CAPEX growth by major tech firms for their AI infrastructure signals a speculative market.
Bitcoin’s (BTC) end-of-month sell-off intensified as the price fell to $107,328 shortly after the New York market opened, reaching an intraday low of $106,800. This trend reflects slight weaknesses in US stock markets, where the S&P 500 and Nasdaq recorded minor losses despite Big Tech’s third-quarter earnings exceeding expectations.
The tech giants known as the Magnificent Seven, including Meta and Microsoft, experienced respective declines of 10% and 3% in their share prices, as investors’ doubts regarding Big Tech companies’ AI investments overshadowed their positive earnings. Meta increased its capital expenditure on AI to a range of $70 billion–$72 billion, while Alphabet projected up to $93 billion for AI infrastructure development.
The market also seems skeptical of President Trump’s optimistic account of his trade deal talks with Chinese President Xi Jinping. Aside from a reduction in fentanyl-related tariffs and China agreeing to postpone its ban on rare earth exports for a year, few specifics about the discussions or potential agreements have surfaced, leaving the US-China trade conflict as a looming concern for investors.
Related: Bitcoin faces a potential ‘20-30%’ decline as crypto markets liquidate $1.1B within 24 hours.
Bitcoin’s underwhelming price action is an unexpected outcome for investors who anticipated a rally to higher ranges if a Trump-China trade deal, a 25 basis point cut in Federal Reserve interest rates, and an end to quantitative tightening were to be confirmed by the end of October.
As it stands, the most likely direction for Bitcoin is downward, with Hyblock’s liquidation heatmap data indicating immediate liquidity at $103,800.
The 1-month lookback, considering longer-held positions, reveals long liquidity at $100,500 and $98,600.
This article does not constitute investment advice or recommendations. Every investment and trading decision involves risk, and readers should do their own research before acting.
