Key Takeaways
- Bitcoin has plunged 24% in the last 1.5 hours, now trading below $106.
- After failing to hold a critical support level, the top cryptocurrency risks dropping to $100.
The cryptocurrency market started the week on a bearish note, with Bitcoin surrendering some of last week’s gains. The world’s largest cryptocurrency by market cap has lost 24% of its value in just 90 minutes, currently trading under $106.
At press time, Bitcoin’s price hovers at $105,503, with potential for further declines if the bearish trend continues. BTC dipped to the $105,250 zone on Tuesday, unable to sustain the key support level at $105,800.
With sellers dominating the market, Bitcoin’s price could face additional downward pressure in the coming hours or days.
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Bitcoin Price Prediction: Selling Pressure Could Push BTC to $100
The BTC/USD 4-hour chart shows a bearish but inefficient trend, suggesting sellers may push liquidity higher before another drop. Technical indicators on the 4H chart remain negative, signaling strong selling pressure.
- MACD Line: Entered negative territory, indicating more sellers than buyers.
- RSI (46): Reflects weak buying momentum.
If the price continues sliding below moving averages, the BTC/USD pair could test the next major support at $104,500. Losing this level might trigger a drop to $100 for the first time since June 23.
However, a bullish reversal could occur if BTC breaks above the Effective Price Action (EPA) level at $106,719. Surpassing the Induced Liquidity (ILQ) zone ($107,866) may fuel a rebound toward $109.
FAQ Section
1. Why is Bitcoin dropping sharply?
Bitcoin’s decline follows a failure to hold $105,800 support, compounded by increased selling pressure and weak buying interest.
2. What’s the next critical support for BTC?
If $104,500 fails, $100 becomes the next likely target.
3. Can Bitcoin recover soon?
A breakout above $106,719 (EPA) could invalidate the bearish setup and trigger a rally.
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Market Sentiment and Key Factors
1. Liquidity and Volatility
- Recent price swings highlight high volatility, typical of crypto markets.
- Traders should monitor order book liquidity for potential reversals.
2. Macroeconomic Influences
- Global risk-off sentiment and regulatory uncertainties contribute to downward pressure.
3. Historical Data Comparison
| Date | Price Drop | Recovery Time |
|---|---|---|
| June 2023 | 22% | 3 days |
| March 2023 | 18% | 5 days |
Final Thoughts
Bitcoin’s short-term trajectory hinges on whether it reclaims $106,719 or breaks below $104,500. Traders should prepare for both scenarios, using stop-loss orders and dollar-cost averaging to mitigate risks.
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