Bearish view
- Sell the BTC/USD pair and set a take-profit at 100,000.
- Add a stop-loss at 112,000.
- Timeline: 1-2 days.
Bullish view
- Buy the BTC/USD pair and set a take-profit at 112,000.
- Add a stop-loss at 100,000.
The BTC/USD pair crashed below the important support level at 106,000 as the crypto market continued its recent downward momentum. Bitcoin has now dropped by over 15% from the year-to-date high as it continues to underperform the stock market.
Bitcoin Price Crashes as Liquidations Jump
The BTC/USD pair dropped sharply as liquidations in the crypto industry jumped, sending memories of what happened on October 11 when over 1.6 million were wiped out.
Data by CoinGlass shows that the total liquidations jumped by over 642% in the last 24 hours to over $1.18 billion. Bitcoin positions worth over $312 million were liquidated in the past 24 hours, with most of them happening on Hyperliquid.
Bitcoin price also retreated as traders continued to deleverage their positions amid the ongoing liquidations. The open interest dropped to $70 billion, down from $94 billion at the highest level in October.
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The coin has remained under pressure as the Crypto Fear and Greed Index moved to the fear zone of 35, a sign that many investors are staying on the sidelines.
The next key catalyst for Bitcoin and the crypto market will be the upcoming ADP private payrolls report on Wednesday. This report will be important as it will help the Federal Reserve when making its decision in December.
The BTC/USD pair will also react to the upcoming Supreme Court hearings on tariffs. The oral argument will be held on Wednesday, providing hints on how the court will rule.
Signs that the court will oppose Trump’s policies will benefit the stock and the crypto market by possibly reducing inflation and pushing the Federal Reserve to continue cutting interest rates.
BTC/USD Technical Analysis
The daily timeframe chart shows that the BTC/USD pair has dropped in the past few weeks, moving from the all-time high of 126,300 to below 106,000.
It has settled at the 38.2% Fibonacci Retracement level. Most importantly, it has formed the head-and-shoulders pattern.
Bitcoin price formed a death cross pattern as the 50-day and 200-day Exponential Moving Averages crossed each other.
Bitcoin has dropped below the Supertrend indicator, while oscillators point to more downside. If this happens, the next key support level to watch will be the 50% Fibonacci Retracement level at 100,355. A move above the shoulder at 116,300 will invalidate the bearish forecast.
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