Bitcoin’s (BTC) weak performance in recent weeks, coupled with the “forced liquidation trauma” that still haunts the market, has created a distinct sense of fatigue among crypto asset investors. Having failed to produce a significant recovery since last month's sharp decline, Bitcoin is struggling to ride the wave of risk appetite. The price briefly rose above $107,000 on the last trading day, but quickly fell below $105,000. The damage from last month's crash, which wiped out billions of dollars in market value, is believed to have not yet been fully repaired. Large investors taking profits at year-highs and forced liquidations in early October have intensified selling pressure again. This chart highlights the fragility of investor sentiment. Market momentum has yet to recover. Bitcoin futures open interest remains around $68 billion, well below last month's peak of $94 billion. Funding rates are also frozen in neutral territory. While equity and credit markets have strengthened on hopes for a US government reopening, inflows into Bitcoin ETFs have not shown the same vigor. The technical outlook isn't strong either, according to analysts. Bitcoin is trading below its 200-day moving average (around $110,000), which analysts consider the threshold for a sustainable uptrend. This suggests significant hurdles remain to any upward price movement. Related News: BREAKING: Coinbase Decides to List a Surprise Altcoin Despite continuing the year with positive returns, Bitcoin is underperforming compared to both gold and tech stocks. This leaves BTC vulnerable if momentum-driven funds reverse direction. While expectations of a US government reopening have lifted risk assets somewhat, the crypto market remains generally cautious. Senior strategist George Mandres describes the current situation as a “dead cat bounce”: The market is exhibiting a temporary recovery after a sharp decline. On the stock front, there are expectations that the government reopening will further stimulate risk appetite. However, on the cryptocurrency front, the sentiment is different. There's a widespread belief that former Bitcoin holders are selling in large quantities. This, coupled with premium pressure from companies that have added digital assets to their balance sheets and limited new capital inflows in the ETF space, is cooling risk appetite. On the downside, $103,000 is being monitored as a critical structural level. Below this band, a bearish scenario extending to $86,000 is anticipated. Deeper support lies at $82,000, which also coincides with the 100-week moving average. *This is not investment advice. Continue Reading: What’s the Latest on Bitcoin? Analyst Calls Partial Recovery a “Dead Cat Bounce” – Here Are Predictions for the Coming Days
