Quick overview

Live BTC/USD Chart

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Bitcoin has recently shown a strong short-term bearish trend, experiencing a decline of over 7% in the latest trading session. This sell-off can largely be attributed to increased risk aversion in the financial markets, which has reduced demand for Bitcoin. Downward pressure on Bitcoin’s short-term price is likely to persist as long as investors continue to favor safer investments and market confidence remains low.

The cryptocurrency dipped below $100,000, reaching its lowest level since May after falling more than 10%. Since then, Bitcoin has rebounded to above $103,000, positioning itself roughly halfway between the psychological support level of $100,000 and the previous support-turned-resistance level at $108,000.

Today’s price movement reflects stabilization following a significant sell-off earlier this week. The near-term outlook remains neutral at best as long as Bitcoin stays within the $100,000 to $108,000 range. However, after a challenging start to the week, traders are likely to welcome any positive developments.

Moving forward, traders will be on the lookout for a potential “death cross” between the 50-day exponential moving average (EMA) and the 200-day moving average (MA), which could indicate a shift in the long-term trend. If the price falls below $100,000, it may trigger another decline.

Market sentiment has been as fragile as it has been in months following a significant “risk-off” move yesterday. Fortunately, today’s better-than-expected economic data and early signs of progress toward reopening the US government have helped stabilize major markets.

The final UK PMI survey opened the European session on a strong note with a score of 52 points, compared to the expected score of 51. Another positive report came from the ADP Employment report, which showed 42,000 new jobs created versus the anticipated 25,000.

Policymakers believe that, given current immigration trends, this job growth is close to the breakeven point that will prevent the unemployment rate from declining further, even though it remains below the 100,000+ readings seen earlier this year. Regarding unemployment, the world’s largest economy has not released official employment data since early September, and it seems unlikely that the October Non-Farm Payrolls (NFP) report will be published this Friday either.