MDFEX on Today’s Bitcoin Plunge: What Really Drove the Move
Markets woke up to a sharp, news-heavy risk-off session. Bitcoin slid toward the $104k–$107k area, printing the weakest levels since June as crypto followed a broader cross-asset wobble.
1) Cascading liquidations amplified the drop
Futures and perpetuals hit a tipping point: once spot breached key supports, margin calls and auto-deleveraging kicked in, accelerating the sell-off across majors and altcoins. Intraday liquidation tallies passed the billion-dollar mark, a pattern consistent with prior October washouts.
2) Macro risk-off: regional-bank stress and tariff noise
Equities and credit wobbled as U.S. regional-bank worries and renewed U.S.–China tariff rhetoric resurfaced, pushing investors toward cash and gold while crypto saw outflows. That macro backdrop pressured Bitcoin all morning before a partial stabilization.
3) Technical breaks flipped momentum
After rebounding attempts stalled, Bitcoin lost key moving-average support—a classic momentum shift that tends to extend downside moves until fresh buyers step in size. Several desks flagged the 200-day breach as a sentiment inflection.
4) Liquidity preference shifted to stablecoins
On-exchange behavior showed rotation into stablecoins as traders waited out policy and geopolitical catalysts—another sign that risk appetite temporarily faded.
5) Post-wipeout fatigue lingered
Today’s slide also sits in the shadow of last week’s historic October wipeout; price continues to struggle for momentum as participants rebuild confidence.
MDFEX’s Level Map and Near-Term Scenarios
- Support: $104k–$107k remains the first line. A clean hold and shrinking liquidation pace would favor a reflex bounce.
- Resistance: $112k–$115k is the initial recovery band; reclaiming it would ease downside pressure. (Inference from intraday ranges reported across live market updates.)
- If pressure persists: Another liquidation wave could probe psychological marks just below $104k before buyers show.
MDFEX Guidance for Clients
- De-risk leverage into volatility pockets. Let liquidation metrics cool before re-adding beta.
- Watch cross-asset signals—U.S. bank headlines, tariff commentary, dollar and yields; crypto’s path today clearly tracked the broader risk tape.
- Respect the technicals. Until key MAs are reclaimed, expect bounces to be tactical rather than trending.
