Why Bitcoin’s Recent Slide May Not Be About Strategy
Bitcoin has slipped below $70,000 for the first time in two months, leaving the cryptocurrency market vulnerable. The largest cryptocurrency has lost over 4.45% in the past 24 hours, recently trading near $69,400. This decline may have more to do with external factors like AI-related equities than strategy or sales by major corporate holders.
The crypto market’s near-term setup doesn’t appear supportive, with spot bitcoin ETF suffering net outflows and major holders selling small portions of their bitcoin. However, experts like Pierre Rochard believe that AI-related equities are vacuuming up excess liquidity, affecting bitcoin’s market. A healthy labor market and higher energy prices also mean that sentiment for dovish rate cuts is low.
What’s Next for Bitcoin?
Economic data will be the next major catalyst for bitcoin’s price. A strong U.S. jobs print could keep rate-cut hopes subdued and further pressure crypto, while softer data may help bitcoin reclaim levels above $70,000. The bitcoin price is approaching a key confluence support, with the 0.618 Fibonacci level near $69,000 and the long-term ascending trendline from the 2022 lows.
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Rochard added that a healthy labor market and higher energy prices mean “sentiment for dovish rate cuts is nowhere to be found,” even as bitcoin’s fundamentals “have never been better.”
That leaves economic data as the next major catalyst. A strong U.S. jobs print on Friday could keep rate-cut hopes subdued and further pressure crypto, while softer data may help bitcoin reclaim levels above $70,000. Stay alert!
Read more: For analysis of today’s activity in altcoins and derivatives, see Crypto Markets Today . For a comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead.”
What’s trending
- Mt. Gox moves 10,422 bitcoin worth $739 million to a new wallet as deadline nears (CoinDesk): Defunct bitcoin exchange Mt. Gox moved bitcoin worth roughly $739 million to a new wallet. The transfer is the largest single move in months and comes ahead of the Oct. 31 deadline to complete creditor repayments.
- Bitcoin’s biggest ETF selloff yet hits $3.4 billion as AI stocks keep climbing (CoinDesk): U.S. spot bitcoin ETFs suffered their largest and longest withdrawal streak on record, with investors pulling roughly $3.45 billion across 11 consecutive trading sessions.
- MoneyGram launches stablecoin on Stellar, joining rush toward digital dollar payments (CoinDesk): MoneyGram introduced a U.S. dollar-backed stablecoin that will be embedded into the MoneyGram app. It enables customers to hold a dollar-denominated balance in a self-custodial wallet and transfer funds through the company’s global payments network.
- Russian drones, missiles strike Ukraine in major attack; 11 dead, scores wounded (Reuters): Thousands took shelter as Russia launched 676 drones and 74 missiles in one its most dangerous attacks on Ukraine, killing 11 and injuring scores of people overnight.
Today’s signal
On the weekly chart, the bitcoin price is approaching a key confluence support — the 0.618 Fibonnaci level near $69,000 and the long-term ascending trendline from the 2022 lows.
RSI remains near 39 with no bullish divergence yet apparent, so there’s confirmation of a bottom from the momentum indicator. For the time being, it’s purely a structural level test.
