Bitcoin (BTC), the world’s leading cryptocurrency, slipped below the $108,000 mark at the start of Asian trading on Monday, continuing the cautious sentiment that has prevailed since late October. This decline reflects a reversal from the “Uptober” momentum as investors remain wary amid macroeconomic uncertainties, including the Federal Reserve’s gradual policy stance and a strengthening US dollar.
After peaking near $126,000 in mid-October, Bitcoin experienced a sharp sell-off, dropping nearly 20% to lows around $104,000 before stabilizing in a range between $105,000 and $110,000. Tuesday’s dip below $108,000 extended this consolidation phase, characterized by muted volatility but persistent supply pressure.
Market analysts note that key resistance lies between $110,700 and $111,500, while support is expected around $104,000 to $106,000. A sustained move above resistance could trigger a bullish reversal, whereas a break below support might lead to further correction toward lower institutional demand zones near $88,000.
The broader cryptocurrency market is also under pressure, with altcoins such as Ethereum, Solana, and Dogecoin experiencing declines ranging from 4% to over 6%. Total crypto market capitalization slipped by 3.3% to roughly $3.6 trillion.
Despite near-term weakness, some experts remain optimistic about Bitcoin’s long-term prospects. On-chain data shows increasing realized capitalization and steady activity, signaling that structural strength endures amid short-term profit-taking and ETF outflows.
Investors are advised to approach the current environment with caution, prioritizing risk management as the market navigates a complex landscape shaped by regulatory developments, macroeconomic factors, and evolving investor sentiment.
In summary, Bitcoin’s fall below $108,000 signals a cautious market mood, ending an extended rally in October. While short-term volatility remains elevated, underlying fundamentals suggest potential for renewed momentum later this year, contingent on broader economic clarity and market dynamics.
