Bitcoin, Ethereum, and other major cryptocurrencies are extending their decline, as pessimistic macroeconomic news keeps weighing heavily on overall market sentiment.

Over the past 24 hours, Bitcoin has dropped by 1.57% to $108,757 — the lowest level since early September. Ethereum also declined by 1.5%, falling below the $4,000 landmark and is now trading at $3,828. BNB, XRP, and Solana have also seen significant losses.

The market remains volatile amid headlines surrounding the ongoing trade war between the US and China, with recent statements by Donald Trump having the most notable impact. Additionally, renewed concerns over the health of regional banks have pressured major stock indices, which has again spread over into the cryptocurrency sector.

The uncertainty in trade relations between the world's two largest economies is fueling a climate of anxiety. Investors fear the imposition of new tariffs and sanctions that could negatively impact global economic growth. Companies are being forced to rethink their business strategies and supply chains to adapt to the new reality. Trump's "Twitter diplomacy" only adds to the confusion, making decision-making more difficult. The prevailing uncertainty and fear of risk are prompting investors to pull funds out of riskier assets, including cryptocurrencies.

However, some analysts believe that, in the long term, cryptocurrencies could benefit from instability in traditional financial systems, serving as an alternative store of value.

The current Cryptocurrency Fear and Greed Index stands at 22, indicating that the market is exhibiting extreme fear. This metric, which reflects a combination of factors including volatility, market momentum, social media activity, dominance, and Google trends, signals a predominance of pessimistic sentiment among investors.

Extreme fear is often the result of news cycles dominated by negative events, regulatory risks, and macroeconomic uncertainty. In such scenarios, market participants tend to panic sell, leading to further price declines and exacerbating the impact on the index.

However, historically, periods of extreme fear have proven to offer buying opportunities for long-term investors. Seasoned market players carefully examine assets that may be undervalued during times of panic in order to acquire them at attractive prices. It's important to remember that the cryptocurrency market is cyclical, and downturns are inevitably followed by periods of growth.

Trading recommendations

For Bitcoin, the technical outlook now centers on buyers aiming to reclaim the $109,300 level, which would pave the way toward $111,600. From there, it's a short distance to $113,800. The furthest upward target is the $116,300 area — a breakout above this would indicate a strengthening bull market. On the downside, support is expected at $106,700. A drop below this area could send BTC swiftly down to around $103,400, with the most distant target being the $100,000 zone.

Regarding Ethereum, a solid close above the $4,016 level would open a direct path toward $4,180. The furthest upward target is the $4,318 level — a breakout above this would signal a bullish shift and renewed buyer interest. In case of a pullback, strong buying interest is expected at $3,858. If ETH falls below this area, it may quickly drop to around $3,717, with the lowest target being the $3,505 zone.

What's on the chart

• The red lines represent support and resistance levels, where price is expected to either pause or react sharply.
• The green line shows the 50-day moving average.
• The blue line is the 100-day moving average.
• The lime line is the 200-day moving average.

Price testing or crossing any of these moving averages often either halts movement or injects fresh momentum into the market.