Daily Crypto Signals: Bitcoin Dips to $108K, Ethereum Slides Under $4,000 Amid Market Turbulence
The cryptocurrency market experienced notable selling pressure today as Bitcoin retreated from recent highs while political developments
Quick overview
- The cryptocurrency market faced selling pressure today, with Bitcoin dropping below $108,000 amid political developments and a stablecoin minting error.
- US President Donald Trump hosted a fundraiser with crypto CEOs, highlighting the growing intersection of politics and digital assets.
- Paxos accidentally minted $300 trillion worth of PayPal USD due to a technical error, which was quickly rectified, showcasing the transparency of blockchain technology.
- Ethereum also struggled, falling below the $4,000 support level, with significant resistance and support levels identified for future price movements.
The cryptocurrency market experienced notable selling pressure today as Bitcoin BTC/USD retreated from recent highs while political developments and a major stablecoin minting error dominated headlines. Meanwhile, revelations about the Trump family’s billion-dollar crypto profits have sparked fresh discussions about the intersection of politics and digital assets.
Crypto Market Developments
There was a lot of political and operational activity in the business, which showed that blockchain technology was becoming more integrated into mainstream banking and politics. It also reminded people of how open blockchain technology is.
US President Donald Trump hosted a fundraiser event at the White House that was attended by crypto CEOs, including the co-founders of Gemini and people from Coinbase and Ripple. This gathering shows how much more the industry wants to have a say in politics and be close to power. A separate investigation by the Financial Times found that the Trump family’s crypto businesses have made more than $1 billion in pre-tax profit, mostly through a crypto company called World Liberty Financial and various memecoins. This further connects political figures to the world of digital assets.
In other developments, Paxos accidentally produced $300 trillion worth of the PayPal USD (PYUSD) stablecoin because of a “internal technical error.” This showed how open the blockchain is. The crypto community promptly pointed out the mistake, and the whole amount was destroyed in just 22 minutes. This shows how fast and visible decentralized ledgers are. This event was used as a prime example by industry leaders to show why traditional banking should use blockchain. They said that blockchain’s traceability offers better governance and faster rectification capabilities than older financial systems.
Bitcoin Dips to $108,000 Amid Selling Pressure
After failing to break through the $113,000 resistance level, Bitcoin saw further selling pressure, which caused prices to drop below important support levels. The most popular cryptocurrency fell below $112,000 and $110,500 before losing even more value and dropping below the $108,000 threshold, which is a key psychological level. As bears took control of the market, BTC hit a local low of $107,483. The price is now holding steady below both the $110,000 mark and the 100-hour simple moving average.
Technical indications don’t seem good for short-term bulls. On the hourly chart, a negative trend line is building resistance at $110,500. The first important barrier is above $110,000, and the immediate opposition is about $109,500. Bitcoin has to go back above $110,500 and the trend line in order to make a real recovery. This might lead to a test of $111,800, which is close to the 50% Fibonacci retracement level of the recent drop from $115,975 to $107,483. But if BTC doesn’t go back up above $110,000, it looks like it will go down much more. $108,000 is a support level to keep an eye on, and $107,500 and $106,200 are strong support levels. Traders are looking at the $105,500 area as the next important support level, with the primary floor around $103,200. Bitcoin may have trouble bouncing back in the short term if it falls below this level.
Ethereum Sellers Drag Price Under $4,000
Ethereum ETH/USD followed Bitcoin’s lead and had trouble staying over $4,020 before giving up the important $4,000 support level. The second-largest cryptocurrency by market capitalization fell through several support zones, testing $3,820 and reaching a low of $3,828 as sellers kept control. ETH is presently trading below both the $4,000 psychological level and the 100-hour simple moving average. On the hourly chart, a crucial negative trend line is building resistance at $4,070.
Ethereum’s future seems tough. There is immediate resistance near $3,950 and the next big barrier is at $4,020, which is the 50% Fibonacci retracement level of the current drop from $4,215 to $3,828. The first big resistance point is at $4,070, which is also the trend line. To make any long-term recovery, this level must be broken. If prices break above $4,070, they could go up to $4,120, and in the short run, they could even go up to $4,220 or $4,250. On the other hand, if it doesn’t go back to $4,020, it could go down again, with first support at $3,880 and significant support at $3,820. If Ethereum drops below $3,820, it might go down to $3,740. If it keeps going down, it could reach $3,650, which is a major support level.Try again
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