Bitcoin drops under $100K to the lowest point in 6 months through sell-offs and low demand, and a recovery to the level of $100.7 is required to turn the tide.
Bitcoin has crashed to its lowest in six months, falling below the critical point of $100,000, in the face of increased selling pressure in the market.
The cryptocurrency lost major technical support and borrowed liquidity at lower levels than before, indicating bearish market momentum in the short term.
This swift decline is preceded by a rejection at around $107K that led to a possible downside test that was soon realized.
The rejection of BTC at around 107,000, as reported by CryptoMichNL on X, triggered a collapse through the 100,000 region, pushing the price downwards.
Source- X
The same source notes that one would need to reclaim the bearish trend in lower timeframes. This requires reclaiming the bearish threshold of 100.7K.
The long-term holders intensified the bearish pressure through heavy selling. Statistics show that long-term investors bought nearly 815,000 BTC, worth an estimated 79 billion dollars, over the last month.
Such a large offloading is accompanied by spot Bitcoin ETF outflows and reduced institutional demand. Futures funding has turned negative, and liquidations have exceeded $550 million.
BTC also faces pressure from the macroeconomic environment. Weak demand from U.S. investors, reflected in persistently negative Coinbase Premium levels, shows a lack of buying interest during U.S. trading hours.
This poor appetite is accompanied by uncertainty surrounding the Federal Reserve’s interest rate policy. This uncertainty suppresses risk sentiment.
Bitcoin has technically violated a number of important supports, such as the 200-day moving average and key Fibonacci levels. This indicates an increased risk of further downward performance.
Analyst opinion is that a decisive move below 97,000 would clear the way to much lower targets between 92,000 and 74,000. This is in keeping with classic mid-cycle corrections in the ongoing bull market.
However, there are indications of a possible floor. JPMorgan analysts project the cost of production of Bitcoin at approximately 94,000, which frequently serves as a historic price floor.
In spite of the crash, approximately 72 percent of the BTC supply is still in profit. This generates a base of holders who are less prone to selling.
Is Bitcoin Nearing a Major Rebound?
The recent crash has sparked controversy about whether Bitcoin is approaching a bottom. The further decline is on the horizon.
Recovery of $100.7 is a critical threshold that may turn the tide in the right direction. Nevertheless, the current trend at shorter time periods is still bearish pending confirmation.
What Could Trigger a Trend Reversal?
Renewed institutional investor demand and a positive shift in macroeconomic signals could stabilize Bitcoin.
The intervention of the Federal Reserve is essential. Any more vivid evidence of loosening or lowering rates can lead to the recovery of investor confidence and the decrease in risk aversion.
Meanwhile, traders exercise caution with Bitcoin as it navigates technical and fundamental pressure.