Bitcoin Drops Below $104K: Is a $100K Retest Imminent?

Bitcoin price falls below the $104k level and warns of a support trendline breakdown to potentially retest the $100k psychological milestone.

After a sudden 2.75% drop over the past 24 hours, Bitcoin has lost its footing above the $104,000 mark. The current BTC price is $103,674, with the market capitalization remaining at $2.052 trillion.

As the surge in supply suggests a potential extended correction, attention is now focused on a crucial support trendline. Will the declining trend lead to a breakdown that tests the $100,000 level?

Bitcoin Price Analysis

In the 4-hour chart, Bitcoin’s price action shows a failed attempt to maintain a strong close above the 50% Fibonacci level. The key Fibonacci resistance is at $106,912.

Despite reaching a new all-time high of $108,364, overwhelming supply in this region caused a swift bearish reversal. This has led to a 4.42% pullback from the new all-time high.

Bitcoin Price Chart

The bearish retracement has caused the price to fall below the 20-EMA line on the 4-hour chart. After forming two large bearish engulfing candles, Bitcoin is now testing a critical local support trendline.

This support trendline sits slightly above the 38.20% Fibonacci level at $103,093. Additional support is found near the 50-EMA line, around $102,676.

Given these support levels, BTC may experience a bullish recovery. However, the quick decline has caused the 4-hour RSI to drop below the halfway mark, signaling increased selling pressure and the potential for further downside.

Bitcoin ETFs Buy The Dip

Amid the overnight correction, BlackRock accumulated $741.41 million worth of Bitcoin yesterday. With this substantial inflow, the total daily net inflow for U.S. spot Bitcoin ETFs reached $493.95 million.

This contrasts with an outflow of $128.17 million from Fidelity and three other ETFs. Furthermore, over the past 14 days, Bitcoin spot ETFs have seen positive inflows totaling $6.45 billion.

BTC Price Targets

According to Fibonacci levels, a breakdown below the 38.20% Fibonacci level could lead to a retest of the $100,000 psychological mark, with the 23.60% Fibonacci level at $98,369 serving as a target in the event of an extended decline.

Conversely, a bullish reversal for Bitcoin would face resistance at the 50% Fibonacci level, with a bullish target set at $110,730.

Source