Key Points:
The BTC chart indicates that the most likely outcome in the short term is a drop to $103,800, eventually falling below $100,000.
Investor concerns about tech giants expanding capital expenditures for their artificial intelligence infrastructure reflect a speculation-driven market.
BTC's end-of-month sell-off accelerated, with prices dropping to $107,328 shortly after the New York market opened, followed by an intraday low of $106,800. This trend corresponds with a slight weakness in the U.S. stock market, despite tech giants' third-quarter earnings reports exceeding expectations, leading to small declines in the S&P 500 and Nasdaq indices.
Skepticism among investors regarding the investment expenditures of large tech companies in the AI sector overshadowed their positive earnings reports, resulting in stock price declines of 10% and 3% for Meta and Microsoft, respectively. Meta has raised its capital expenditure in the AI field to between $70 billion and $72 billion, while Alphabet forecasts its capital expenditure for AI development could reach $93 billion.
The market also seems unconvinced by U.S. President Trump's optimistic description of his trade agreement meeting with Chinese President Xi Jinping. Aside from cutting fentanyl-related tariffs and China agreeing to postpone its rare earth export ban for a year, there have been few details regarding the nature of the discussions and the subsequent agreement, leaving the U.S.-China trade war as a risk event for investors.
BTC's lackluster performance is undoubtedly an unexpected outcome for investors, who had predicted that if the Trump-China trade agreement, a 25 basis point rate cut by the Federal Reserve, and the end of quantitative tightening were all confirmed by the end of October, BTC would reach its upper range.
As it stands, BTC's path of least resistance remains downward, with Hyblock's liquidity heatmap indicating recent liquidity at $103,800.
A one-month review of long positions shows bullish liquidity at $100,500 and $98,600.
Related: The Federal Reserve hints at "end of quantitative tightening": What does this mean for Bitcoin (BTC) prices?
This article does not constitute any investment advice or recommendation. All investment and trading activities carry risks, and readers should conduct their own research before making decisions.
Original: “Bitcoin Scrapes New Lows as Tech Stocks Drop: Data Forecasts BTC Dip Below $100K”
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