Often seen as a proxy for investor risk appetite, crypto’s sharp declines reflect the increasingly fragile mood across markets. High-flying AI stocks have stumbled, leading the Bitcoin to shed nearly 13% this week alone. The drop follows a powerful rally earlier in the year that lifted Bitcoin above $120,000 in October, buoyed by improving regulatory sentiment toward crypto globally.
“Bitcoin’s break below $82,000 comes amid a broad market unwinding, with more than $2 billion in leveraged positions liquidated in 24 hours,” Riya Sehgal, Research Analyst at Delta Exchange, said that macro conditions have shifted rapidly.Sehgal, however, noted that despite selling pressure from large holders, steady accumulation around $85,000 shows dip-buyers are stepping in. “Bitcoin’s momentum reset is nearing exhaustion, a phase that has preceded sharp reversals in past cycles,” she said. Technically, the cryptocurrency is sitting on a critical support zone at $82,000; losing that level could open downside risk toward $78,000. On the flip side, reclaiming $90,000 would put a move toward $98,000 back on the table.Ethereum remains under strain after slipping below $2,700. Immediate support is at $2,600, followed by $2,450. Experts say ETH needs to climb back above $2,800 to stabilize; if not, a fall toward $2,300 is possible, with broader trend indicators still leaning bearish.
Across the crypto board, Sola dropped 5% at $125, while BNB slid over 4% to $820 levels. The two are down 12% each on a weekly basis. Bitcoin briefly touched $81,629 in London trading before recovering toward $84,166, but it remains down 23% for the month — its steepest monthly slide since the 2022 crypto meltdown.Open interest in Bitcoin perpetual futures has fallen 35% from the October peak of $94 billion, signaling a sharp unwind of leveraged positions. Market maker Keyrock noted traders remain hesitant to re-enter the market “in size,” with activity now far below recent highs.
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