Bitcoin dropped below $110,000 on Thursday, extending its monthly decline to over 5%, according to data from CoinMarketCap.
The flagship cryptocurrency is now trading around $109,480, down sharply from its early October highs above $125,000. The move follows a failure to hold key technical support levels, signaling rising bearish momentum.
According to CoinMarketCap data, Bitcoin’s market capitalization stands at $2.18 trillion, with 24-hour trading volume dropping over 11% to $71.54 billion. The current RSI at 32.98 suggests the asset has entered oversold territory, historically a region where short-term rebounds are common, though not guaranteed.
Technical breakdown: Bears in control, but relief bounce possible
On the technical side, Bitcoin has broken below both its 7-day SMA ($114,295) and 30-day SMA ($116,048), reinforcing the bearish bias. The 61.8% Fibonacci retracement level ($112,840) failed to hold, leaving the 78.6% retracement at $109,208 as the next key support to watch.
Analysts note that if Bitcoin holds above this level, it could stage a short-term recovery toward $112,800–$113,000, but a deeper drop remains possible if selling pressure persists. A close above $112,840 would be required to invalidate the current bearish structure and restore near-term momentum.
Market sentiment remains cautious
TradingView data shows intensified volatility as BTC’s price action struggles to stabilize around $109K. Many traders are looking to see whether institutional demand will reappear near this critical support zone.
Despite the pullback, Bitcoin remains up significantly year-to-date, continuing to mirror its typical pre-halving cycle behavior. For now, technical traders are watching closely to see if this oversold condition can fuel a relief rally, or if the next leg lower will confirm a deeper retracement below $109K.