Bitcoin Price Forecast: A Decline to $103,800 and Below $100,000 Looms
Bitcoin’s (BTC) price has taken a hit, falling to $107,328 shortly after the New York open and subsequently hitting an intraday low of $106,800. This move reflects the slight weakness in U.S. stock markets, where the S&P 500 and Nasdaq posted slight losses despite Big Tech companies’ third-quarter earnings beating expectations.
Magnificent Seven giants Meta and Microsoft saw their share prices fall 10% and 3%, respectively, as investor skepticism over big tech companies’ spending on AI investments overshadowed upbeat earnings reports. Meta increased its AI capital spending to $70 billion to $72 billion, while Alphabet forecast up to $93 billion in capital spending for AI expansion. This has led to concerns that large tech companies’ CAPEX expansion for their AI infrastructure reflects a speculatively driven market.
Bitcoin’s Weak Price Performance and Risks
Bitcoin’s weak price performance is certainly an unexpected outcome for investors who are predicting a rally to highs if a Trump-China trade deal, a 25 basis point Federal Reserve interest rate cut, and the end of quantitative tightening policies are confirmed by the end of October. However, the market appears not to accept US President Donald Trump’s positive description of the trade deal with Chinese President Xi Jinping, and the lack of details about the nature of the discussion and any resulting deal has made the U.S.-China trade war an overriding risk event for investors.
According to Hyblock’s liquidation heatmap data, the most immediate liquidity for Bitcoin is at $103,800, indicating a potential decline to this level. The one-month review, which includes longer-held positions, shows long liquidity at $100,500 and $98,600, suggesting that a drop below $100,000 is possible.
Conclusion and Investment Advice
Bitcoin risks a 20-30% decline as crypto markets liquidate $1.1 billion in 24 hours. As of today, the path of least resistance for Bitcoin continues to be to the downside. Investors should conduct their own research and consider the risks involved before making any investment decisions. This article does not contain any investment advice or recommendations.
This article does not contain any investment advice or recommendations. Every investment and trading activity involves risks, and readers should conduct their own research when making their decision. For more information, visit https://cointelegraph.com/news/bitcoin-scrapes-new-lows-as-tech-stocks-drop-data-forecasts-btc-dip-below-dollar100k?utm_source=rss_feed&utm_medium=rss_category_market-analysis&utm_campaign=rss_partner_inbound
