BTC Breaks Below Long-Term Support While Dollar Strengthens to Highest Level Since July

Bitcoin Slips Below Key 200-Day Average as Stronger Dollar Weighs on Crypto Market

Bitcoin (BTC) fell below a crucial technical threshold on Wednesday, signaling renewed weakness as the U.S. dollar surged to a three-month high despite improving global trade sentiment.

The leading cryptocurrency dropped beneath its 200-day simple moving average (SMA) at $109,380, a level closely watched by traders as a gauge of long-term momentum. BTC was last seen near $109,950, marking a 2% decline in the session.

Analysts warn that the breakdown could invite further selling from technical traders, potentially driving prices toward the $100,000 region if buying interest fails to return. The U.S. Dollar Index (DXY) climbed to 99.72 — its highest level since August 1 — fueled by Federal Reserve Chair Jerome Powell’s hawkish comments and the Bank of Japan’s continued dovish stance, which weakened the yen.

Powell’s remarks, suggesting that another rate cut in December was “not guaranteed,” reinforced dollar strength and pressured risk assets, including cryptocurrencies.

Interestingly, bitcoin’s decline came even as geopolitical news turned positive. U.S. President Donald Trump and Chinese President Xi Jinping reached an early-stage trade agreement that included reducing tariffs on Chinese goods from 57% to 47% and commitments from Beijing to increase U.S. soybean imports, secure rare earth supplies, and curb fentanyl trafficking.

However, the favorable developments failed to lift digital asset prices, signaling fragile sentiment and weaker speculative demand.

Other major tokens also moved lower. XRP (XRP) hovered around $2.50, nearing a potential “death cross” formation between its 50- and 200-day SMAs — a bearish signal suggesting downside continuation. Solana (SOL) slipped to $186.36 despite strong inflows into Bitwise’s new SOL spot ETF.

With bitcoin now trading below a key long-term trendline, market watchers say reclaiming the 200-day average will be critical to restoring bullish confidence. Until then, dollar strength and macro uncertainty continue to dictate the tone of crypto markets.