Bitcoin fell below the critical 200-day simple moving average of $109,380, signaling potential weakness ahead as the Dollar Index (DXY) continues to gain momentum.
This breakdown could trigger more selling from chart-focused traders, potentially pushing Bitcoin towards $100,000 or less. The dollar index, which measures the U.S. dollar against major fiat currencies, climbed to 99.72 – its highest since Aug. 1 – fueled by hawkish comments from Federal Reserve Chairman Jerome Powell downplaying a December rate hike and the highly dovish stance of the Bank of Japan, which weakened the yen.
Interestingly, bitcoin’s decline comes despite positive developments in trade relations between the United States and China. President Donald Trump and Chinese President Xi Jinping reached a quick agreement to cut tariffs – cutting U.S. tariffs on Chinese goods from 57% to 47% – and boost trade. The agreement also includes Beijing’s commitment to guarantee supplies of rare earths, buy American soybeans and crack down on fentanyl trafficking. Yet this positive result failed to spark a crypto rally, suggesting underlying weakness in demand.
Other cryptocurrencies are also under pressure: looked set to confirm a “death cross” with its 50-day and 200-day simple moving averages in the coming days, while Solana has weakened despite strong initial adoption of Bitwise’s SOL spot ETF.
