Bitcoin Faces $108K Support Test as BTC Price Drops 2.74% Amid Mixed Signals

Quick Take

• BTC currently trading at $109,889.78 (-2.74% in 24h)
• Bitcoin’s RSI at 39.94 signals oversold conditions with potential bounce
• Eric Trump’s $1M Bitcoin prediction provides bullish sentiment despite recent price weakness

What’s Driving Bitcoin Price Today?

The BTC price has declined over the past week, dropping from approximately $113,000 to current levels around $110,000. The most significant recent catalyst came from Eric Trump’s bold prediction at the Bitcoin Asia conference in Hong Kong yesterday, where he forecasted Bitcoin reaching $1 million. This high-profile endorsement initially provided positive momentum for Bitcoin markets.

However, the enthusiasm has been tempered by regulatory headwinds emerging from Texas, where residents near a Bitcoin mining facility in Granbury are seeking to incorporate a new town specifically to regulate mining operations due to noise concerns. While this represents a localized issue, it highlights ongoing challenges facing Bitcoin mining infrastructure in the United States.

The market’s mixed reaction reflects the tension between growing institutional adoption signals and persistent regulatory uncertainties. Eric Trump’s upcoming visit to Tokyo in September for Metaplanet’s shareholder meeting further underscores the international institutional interest in Bitcoin treasury strategies.

BTC Technical Analysis: Bearish Signals Emerge

Bitcoin technical analysis reveals concerning momentum indicators despite the overall bullish long-term trend. The BTC price currently sits below all major short-term moving averages, with Bitcoin trading beneath its 7-day SMA at $112,075 and significantly below the 20-day SMA at $115,458.

Bitcoin’s RSI of 39.94 indicates the cryptocurrency is approaching oversold territory, which could signal a potential bounce for contrarian traders. However, the BTC RSI remains in neutral zone, suggesting the selling pressure hasn’t reached extreme levels yet.

The MACD indicator shows clear bearish momentum with a reading of -1,410.84 and the histogram at -620.67, confirming downward pressure on the BTC price. Bitcoin’s Stochastic oscillator at 12.34 (%K) reinforces the oversold narrative, potentially setting up a short-term reversal opportunity.

Bitcoin’s position within the Bollinger Bands tells a compelling story. With BTC trading near the lower band at $108,382 and showing a %B position of 0.1065, Bitcoin is exhibiting classic oversold characteristics that often precede bounces in trending markets.

Bitcoin Price Levels: Key Support and Resistance

Critical Bitcoin support levels converge around $108,666, which aligns closely with the Bollinger Band lower boundary and represents the immediate strong support zone. A break below this level could trigger additional selling pressure and test psychological support at $108,000.

On the upside, BTC resistance appears formidable at $124,474, representing both immediate and strong resistance levels based on recent price action. The pivot point at $110,929 serves as a crucial short-term battleground for Bitcoin bulls and bears.

For the BTC/USDT trading pair, the 24-hour range of $113,485 to $109,414 establishes the immediate trading boundaries. Bitcoin’s ability to reclaim the $112,000 level would signal potential strength returning to the market.

The Bitcoin support levels become increasingly important given the current technical setup. A successful defense of $108,666 could provide the foundation for a relief rally toward the 20-day moving average at $115,458.

Should You Buy BTC Now? Risk-Reward Analysis

Based on Binance spot market data showing over $1.6 billion in 24-hour volume, liquidity remains robust for Bitcoin trading strategies. Conservative traders should wait for clear signs of support at $108,666 before considering long positions, with stops below $108,000.

Aggressive traders might consider the current BTC RSI levels as an opportunity, but should remain cautious given the bearish MACD signals. The risk-reward profile favors waiting for either a clear break above $112,000 or a successful test of the $108,666 support zone.

Swing traders should monitor Bitcoin’s reaction at current levels closely. A bounce from here targets the $115,000-$116,000 resistance zone, while a breakdown opens the door to the $105,000-$106,000 area.

The average true range of $3,168 indicates elevated volatility, suggesting position sizes should be adjusted accordingly to account for Bitcoin’s current price swings.

Conclusion

Bitcoin faces a critical juncture as the BTC price tests key support around $108,666 amid mixed fundamental and technical signals. While Eric Trump’s bullish $1 million prediction provides long-term optimism, immediate price action suggests caution is warranted. Traders should focus on the $108,666 support test over the next 24-48 hours, as a successful defense could trigger a relief rally toward $115,000, while a breakdown may extend weakness toward $105,000. The combination of oversold RSI conditions and strong support levels presents both opportunity and risk for Bitcoin positions.

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