Bitcoin (BTC-USD) has breached a critical support level that previously prevented its slide toward the $100,000 mark, as tech stock momentum wanes. During Asian trading hours, the leading cryptocurrency fell below $106,000, breaking through a level that had provided support multiple times in recent weeks, according to CoinDesk data.
Ethereum (ETH) also dropped to its lowest level since August, with a "death cross" forming in key moving averages signaling strengthening downward momentum. Meanwhile, Ripple (XRP) hit a three-week low.
Marcus Thielen, founder of 10x Research, noted in a client report that after Bitcoin's breakdown, market focus would shift to the $100,000–$101,000 range. He warned that a breach of this zone could push Bitcoin toward $94,000 or even a deeper correction to $85,000—a "maximum pain zone" coinciding with strong on-chain support levels.
"While such a move may seem extreme, downside risks remain contained as long as Bitcoin holds above the current downtrend line," Thielen added.
Bitcoin’s weakness aligns with diminishing expectations for aggressive Fed rate cuts and signs of a bullish reversal in the U.S. dollar index.
### 'Magnificent 7' Risk Reversal Inverts Meanwhile, the so-called "Magnificent 7" tech stocks—Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla—are showing signs of excessive optimism, a pattern typically seen near major market tops.
Analyst Neil Sethi cited Goldman Sachs data on platform X, noting: "The put-call risk reversal for the Magnificent 7 has inverted for the first time since December (with call implied volatility exceeding puts). This rare occurrence suggests investors are overwhelmingly betting on further upside."
"Historically, such low risk-reversal readings have coincided with short-term consolidation or reversals after peak optimism," Sethi added.
### Oracle CDS Spikes Sharply Separately, credit default swaps (CDS) tied to Oracle surged dramatically after the company disclosed heavy AI investments in Q3, reaching levels unseen outside major macroeconomic stress periods.
Some analysts interpret this as investor concern over booming AI expenditures. Since 2023, AI-driven optimism has been a key driver of the bull market in equities and broader risk assets, including cryptocurrencies.