Bitcoin has slipped toward the $107,000 level amid sour market sentiment, with a possible slide toward $88,000 if the downturn persists.

Key price thresholds to watch are $113,000 as resistance and $88,000 as support; breaking above $113,000 could invalidate the bearish view and trigger a rebound.

The move followed a crash from an all-time high near $126,000, wiping out billions in market value as Bitcoin dipped below $108,000.

Bitcoin’s fundamentals rest on a 21 million coin cap, reinforcing its store-of-value appeal and its role as a hedge against monetary expansion despite short-term volatility.

Strategic guidance urges cautious positioning: watch the 113,000 resistance and 100,000 support, avoid panic selling, and diversify into assets like gold, silver, Ethereum, and other safe havens.

Guidance in FAQs stresses diversification, keeping Bitcoin exposure aligned with long-term goals, and recognizing Bitcoin’s limited supply and decentralization as factors during crashes.

Near-term catalysts to monitor include upcoming US economic data and the risk of a government shutdown, which could keep volatility elevated.

The global backdrop features high debt levels, persistent inflation, and a broader money supply expansion that pressures currencies, framing Bitcoin as a potential hedge with its capped supply.

The latest Fed signal after its rate decision dampened optimism, with Powell’s cautious tone and doubts about a December cut contributing to risk-off selling in crypto.

Investors reduced expectations for further monetary easing, as the Fed’s stance suggests December cuts are not guaranteed, weighing on market sentiment.

Market sentiment remains fearful with the Crypto Fear and Greed Index around 35, while institutional investors pulled substantial sums from Bitcoin and Ethereum ETFs and Coinbase shows a bearish premium.

Looking ahead, the next Bitcoin halving in 2028 will reduce emission further, with about 1.3 million BTC left to mine from roughly 19.7 million already in circulation, a factor in longer-term price paths.