Crypto Market Wavers: Bitcoin Nears Critical Support At $110,000

(MENAFN- The Rio Times) Bitcoin trades near $111,600 as markets show renewed weakness after yesterday's sell-off. The cryptocurrency tested the $110,000 support zone during Asian hours before rebounding slightly.

Trading volume remains elevated at $748 million, confirming that large orders continue to drive price swings. The Relative Strength Index sits at 42, indicating moderate momentum loss without extreme oversold conditions.

Bitcoin now trades below its 50-day moving average of $113,500 but remains above the 200-day average at $104,000. This mixed picture suggests short-term pressure amid a solid long-term trend.

Institutional flows continue to weigh on sentiment. Bitcoin exchange-traded funds recorded $103.6 million in outflows yesterday, led by Fidelity's FBTC product. Ethereum funds suffered even larger withdrawals of $140.8 million.

These redemptions follow the Federal Reserve's cautious commentary on future rate cuts and reflect increasing risk aversion among professional investors.



The Global Liquidity Index, shown as the yellow line on price charts, remains in contraction. This indicator tracks central bank balance sheets and money supply growth.

Declining liquidity often precedes market corrections, as less capital chases risk assets like cryptocurrencies. Ethereum faces renewed selling pressure at $4,030, down 3.3 percent in the past 24 hours.

The token's failure to hold the $4,100 support level extends its weekly loss to 7 percent. Trading volume for Ethereum reached $1.3 billion, underscoring its status as the most liquid altcoin.

Smaller tokens show divergent moves. IN token posted a 52 percent gain amid renewed developer updates and community hype. SafePal rose 9.7 percent on speculation around new product launches.

Conversely, BLESS collapsed 41.6 percent after researchers flagged security vulnerabilities. The wild swings in these tokens highlight the fragmented nature of altcoin markets.

XRP holds firm at $2.86, gaining 0.3 percent on optimism about a pending exchange-traded fund approval. The token's resilience contrasts with broader market weakness and underscores how regulatory clarity can shape price action.

Technically, the next critical levels for Bitcoin include a firm hold of $110,000. A break below this level could trigger further selling toward $105,000.

On the upside, reclaiming $113,000 would challenge the 50-day moving average and could spark a relief rally toward $117,000. Investors now await U.S. core Personal Consumption Expenditures inflation data due tomorrow.

A cooler reading could restore some confidence in risk assets. However, any hawkish surprise may deepen the current correction and push Bitcoin closer to critical support.

The coming sessions will determine whether the market finds a floor at $110,000 or prepares for another leg down.

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