November 13 2025
Bitcoin has recently broken through a crucial support zone, which is having a significant psychological impact on the market. The cryptocurrency fell below $106.000 during Asian trading hours, a level that has served as support several times in recent weeks. This was accompanied by a decline in other major cryptocurrencies, including ether, which recently reached its lowest level since August. The decline in these prices coincides with a broader decline in momentum in the technology sector.
Larger altcoins like XRP and Solana The downside has also been significant, with the latter reaching its lowest level since early August. This indicates some weakness in the market. With these declines, the focus on Bitcoin shifts to the $100.000 to $101.000 price range. Analyst Markus Thielen of 10x Research argues that a break below these levels could pave the way for a further test towards $94.000, or even a full-scale pullback to $85.000, which is considered the maximum pain zone and coincides with strong on-chain support.
While such a move would be extreme, it's important to emphasize that downside risk remains somewhat manageable as long as Bitcoin remains above the current downward trendline. This Bitcoin price action comes at a time when the likelihood of rapid rate cuts by the Federal Reserve has further diminished, while signs of a bullish reversal in the dollar index are visible.
Additional signs of overconfidence are visible in the so-called "Magnificent 7" stocks, including Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla. These stocks exhibit a unique trend globally, often associated with market peaks. The put-call skew of the Magnificent 7 group has reversed for the first time since December of last year, indicating a strong investor preference for calls over puts, as noted by analyst Neil Sethi. This phenomenon is rare and can indicate a predominantly optimistic market position.
Sethi adds that such low skew values historically often correlate with short-term consolidations or reversals, as optimistic sentiment peaks. It's therefore crucial to closely monitor these dynamics, as a shift in focus toward bearish sentiment can lead to significant market volatility.
In tandem with these developments, there has been a sharp increase in Oracle's credit default swap (CDS), which measures the cost of insuring against a potential default. This rise follows the company's recent announcement of significant investments in artificial intelligence, reflecting investor fears about the rise of AI in the current economic environment. The rise of AI has fueled the bull market since early 2023, not only in equities but also in riskier asset classes such as cryptocurrencies.
It can be concluded that the current market situation calls for a careful approach; an optimistic mindset without ignoring the underlying risks can prove dangerous. It remains a challenging environment, and investors must be aware of the signals that influence market dynamics.
What are the implications of Bitcoin's recent price drop for investors?
The break below $106.000 is emblematic of a potential further downtrend. Investors should prepare for revelations about lower price points, such as the potential support around $94.000 and the critical zone of $85.000, which could signal greater risks in their portfolios.
How should investors react to the Mag 7 skew reversal?
The reversal of the skew suggests a possible overvaluation of these stocks and the need for investors to review their positions. This could signal a period of consolidation or even reverse price movements; caution is advised in these markets.
What does the rise in Oracle CDS say about the market?
The rise in CDS costs indicates heightened investor concern about the core health of technology companies, such as Oracle, within the AI segment. This could also have a broader impact on overall market dynamics, especially given the decline in other digital assets impacted by rising uncertainties.
Bitcoin (BTC)
Ethereum (ETH)
XRP (XRP)
