We are almost in the middle of November and the decline in cryptocurrencies continues in full force. BTC fell below 100 thousand dollars again. The 1.5-year uptrend is under significant threat as the 350DMA threshold cannot be maintained at $102,800. Alright in cryptocurrencies What is the reason for the decline?
Why Are Cryptocurrencies Falling?
Third time this month Bitcoin 
$103,128.64 price It fell to five-digit levels, and this was an expected result. The end of the government shutdown was priced in as of Monday, the actual end of the shutdown today did not provide any benefit. As we pointed out in detail in previous news, we are going through days when discussions in the field of artificial intelligence are overwhelming the risk markets.
Technology stocks have made unprecedented gains since the GPT euphoria. Of course, there is no rise that lasts forever, and when the current conditions combined with the pessimism of Fed members about the December interest rate cut, the decline became inevitable.
Bitcoin, which reached its historical peak at $126,080, reached its bull peak on the 1064th day. It reached its peak in accordance with the rule that “the cycle peak is determined by 500-550 days” after the halving. Many investors do not avoid selling because they believe that the historical repetitions they learned in four-year cycles will also work in this cycle.
The weakness in technology stocks, the increasing possibility of the interest rate cut being skipped in December, expectations that historical data based on the four-year cycle will repeat, and the technical end of the 1.5-year uptrend with the loss of 350DMA have started to normalize five-digit prices.
Those Waiting for Cryptocurrencies
Especially the weakening of institutional investor appetite and the fact that whale activities are mainly in favor of sales. ETF Combined with their outflows, the foundations necessary for a sustainable rise are deteriorating. What is needed for the rise is momentum, and all these reasons not only weaken the momentum but also create an environment where sales can no longer be sustained.
At least for a few months cryptocurrencies We are likely to see it move more negatively. Unless BTC can reclaim the $102,800 and $107,000 thresholds, the October ATH level just above $126,000 will remain a distant target.
Some analysts now expect $85,000 BTC He began to argue that 120 thousand dollars was a more reasonable target for the project. The liquidation of nearly 20 billion dollars in October has been continuing for weeks with long purges of up to billion dollars per day. Today we saw half a billion dollars of longer liquidations. If the decline does not bring higher lows and we start to see new lows below 98 thousand dollars, we will unfortunately see that the 85 thousand dollar touts are gaining strength.
QT and the supportive steps expected in the new year do not mean much in cryptocurrencies for the next 2 months. If you add the upcoming Supreme Court tariff decision to all the above negativities, you will understand the motivation of the sellers much better.
