Bitcoin Breaks Below 200-Day Average as Dollar Rally Extends to Three-Month High
Bitcoin (BTC) slid below a key technical threshold on Wednesday, signaling renewed downside momentum as the U.S. dollar surged to its strongest level in three months.
The world’s largest cryptocurrency fell through the 200-day simple moving average (SMA) at $109,380, a level widely viewed as a long-term indicator of market direction. BTC was last changing hands near $109,950, down roughly 2% on the day. Analysts warn that a sustained move below this level could invite further selling pressure, potentially pushing prices toward $100,000.
The dollar’s rally — with the U.S. Dollar Index (DXY) rising to 99.72, its highest since August 1 — was fueled by Federal Reserve Chair Jerome Powell’s hawkish tone and a dovish policy stance from the Bank of Japan that weakened the yen. Powell’s comments downplaying the likelihood of a December rate cut dampened risk appetite, sending equities and cryptocurrencies lower.
Interestingly, bitcoin’s drop came despite encouraging developments in U.S.-China trade talks. President Donald Trump and Chinese President Xi Jinping reached an early agreement to reduce tariffs on Chinese goods from 57% to 47%, alongside commitments from Beijing to increase U.S. agricultural imports, secure rare earth supply chains, and strengthen fentanyl enforcement.
Still, the positive headlines failed to lift sentiment in crypto markets, suggesting that demand remains fragile amid tightening liquidity conditions.
Broader market weakness added to the pressure. XRP (XRP) hovered near $2.50 and appeared on track to confirm a “death cross” between its 50- and 200-day moving averages — a bearish technical pattern — while Solana (SOL) retreated to $186.36 despite solid inflows into Bitwise’s newly launched SOL spot ETF.
Analysts say bitcoin will need to reclaim the $109,380–$110,000 zone to reestablish bullish footing. For now, the strengthening dollar and fading risk appetite continue to dominate sentiment across digital assets.
