Bitcoin’s Compression Near Support Signals an Imminent Directional Break

• Risk assets face a rapid pullback as caution rises over AI and rates.
• Nvidia’s results may steer sentiment across tech stocks and digital currencies today.
• Bitcoin and Ethereum sit at key support zones that could shape next moves.
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We are seeing a sharp pullback across stocks and digital assets, both of which sit in the riskier end of the market. The last comparable decline came in the first quarter of this year, although it took nearly three months to reach that level of correction. This time, the market has moved the same distance in just a little over 30 days.

Investors are showing clear signs of caution, driven by worries about a potential AI bubble, stretched valuations in large tech firms, and the possibility that interest rate cuts in December may pause. Adding to this, the market will focus on Nvidia’s (NASDAQ:NVDA) quarterly results today, which could influence overall sentiment depending on how the numbers are received.

Will Nvidia’s Results Steer Sentiment From Here?

The strength of the current bull market rests heavily on the so-called magnificent seven, the large tech companies driving the AI race with no signs of slowing. Their rising investment plans and sustained share price gains have sparked worries about overextension and the risk of a bubble. The market has become more sensitive to these signals, as seen recently with Meta. Even though Meta beat expectations, its plans for higher capital spending and tougher competition sparked a sharp decline in its share price.

Nvidia’s quarterly results arrive today and mark the final major Q3 update from the leading tech names. How investors respond to the figures will influence sentiment across both equities and digital assets. The results will be released after the close, and expectations call for the company to continue its run of record earnings per share and revenue.

Bitcoin Steadies at Major Technical Confluence

Bitcoin is trading in a strong downward phase that has eased near the 90000 level. This zone matters from a technical perspective because it combines a key demand area with the same scale as the previous major correction seen in the first quarter of the year.

This zone will guide the next steps for the market in the near term. A decisive move by sellers through this level would signal a meaningful break in the trend and open the way toward the 75000 area. If buyers manage to defend this confluence zone, the confirmation would come from a move back above the local downward trend line.

Ethereum Faces Steady Supply Pressure

As expected, capital outflows from assets considered risky did not bypass Ethereum either. The second-largest digital currency by capitalization in the current correction has reached the vicinity of the support level located in the $3,000 price area for ETH.

As expected, capital outflows from risk-sensitive assets have affected Ethereum as well. The second-largest digital currency by market value has slipped toward the support zone near the 3000 level during the current correction.

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Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belongs to the investor. We also do not provide any investment advisory services.