Bitcoin just crossed below then back above $100k invoking the Livermore entry signal. Keep stops tight as the correction in Bitcoin may not yet be over. This could end up being a relatively quick swing trade. It also affects other instruments that are related to Bitcoin including the miners, GBTC, ETHE, and MSTR.
At the Oct 29 conference, Fed Chair Jerome Powell made some hawkish comments saying, “A further reduction in the policy rate at the December meeting is not a foregone conclusion, far from it.”
Higher rates typically strengthen the US dollar, giving institutional investors more incentive to stay holding dollars and less incentive to invest in risk-on assets such as Bitcoin.
These comments spurred doubt in institutional investors, pushing them to sell their Bitcoin and Ethereum as shown by the outflows in both ETFs.
These corrections with 20-30% depth and 1-4 months in duration have been fairly standard as can be seen in a weekly chart of Bitcoin. The current one has a depth of 22% and has run 1 month. Further, when Bitcoin breaks support as it did a few weeks ago, it tends to fall further in quick fashion before regaining its footing and moving to new highs in the ensuing weeks as it did earlier this year, twice in 2024, and three times in 2023.
Bitcoin crossed back above $100k
| Published: | 4 Nov 2025 17:14 ET |
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