Key points:
Bitcoin charts indicate a potential decline to $103,800 and a possible dip below $100,000 as the most probable short-term scenario.
Concerns arise among investors that Big Tech’s CAPEX expansion for AI infrastructure suggests a market driven by speculation.
Bitcoin’s (BTC) sell-off at month-end intensified as prices fell to $107,328 shortly after the New York market opened, reaching an intraday low of $106,800. This trend reflects a slight downturn in US stock markets, with the S&P 500 and Nasdaq recording minor losses despite Big Tech companies exceeding third-quarter earnings expectations.
The Magnificent Seven giants, Meta and Microsoft, experienced respective declines of 10% and 3% in their stock prices, as investor skepticism regarding Big Tech’s AI expenditures overshadowed their positive earnings reports. Meta increased its AI capital expenditure to a range of $70 billion–$72 billion, whereas Alphabet projects up to $93 billion in CAPEX for AI developments.
The market seems skeptical of President Trump’s optimistic portrayal of his trade deal discussion with Chinese President Xi Jinping. Aside from a reduction in fentanyl-related tariffs and China’s agreement to postpone its rare earth export ban for one year, few details from the talks have surfaced, leaving the US-China trade conflict as an lingering risk for investors.
Related: Bitcoin risks ‘20-30%’ drop as crypto markets liquidate $1.1B in 24 hours.
Bitcoin’s underwhelming price movements are certainly an unexpected result for investors who anticipated a rally to range highs if a Trump-China trade agreement, a 25 basis point interest rate cut by the Federal Reserve, and the cessation of the quantitative tightening policy were confirmed by the end of October.
Currently, the most likely trajectory for Bitcoin appears to trend downward, with Hyblock’s liquidation heatmap data showing immediate liquidity at $103,800.
The one-month retrospective, which captures longer-held positions, indicates long liquidity at $100,500 and $98,600.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
