An analysis has emerged suggesting that Bitcoin prices have fallen below two important support levels, increasing the likelihood of a drop to the $100,000 level.
On the 1st (local time), Bitcoin failed to surpass the $109,000 resistance line for the past two days.
"Bitcoin is likely to hit a local high before the selloff begins and the price retreats to the $105,000 range," analysts at Bitfinex wrote in a market report.
"It is possible that a price correction zone has been formed or will be in the foreseeable future," he said. Chart analysis shows that Bitcoin is currently trapped between a downtrend line and a moving average.
The moving averages are continuing to slope upwards, giving a slight advantage to buy, but the RSI is also holding near the midpoint.
If the price falls below the moving averages, the BTC/USDT pair could reach $104,500 and the psychological support at $100,000.
Such a move would suggest that Bitcoin is still stuck inside the descending triangle pattern.
For this downtrend pattern to be invalidated, the price needs to bounce off the moving averages and break above the downtrend line.
If this occurs, the price could rise to the neckline of the inverse head and short LUDA pattern. Currently, BTC is below its moving averages and short-term selling is in full swing, which is likely due to some short-term investors.
The $104,500 support is expected to be strongly defended by buyers, and if this level is broken, the price will likely fall to the psychological support of $100,000.
The first signal of a bullish turn would be whether or not the price breaks out of the 20-day exponential moving average (EMA). If it breaks out of this level to the upside, Bitcoin could resume its downward trend.
A rally to the lend line is possible, at which point selling may come in again. If buying breaks out to this downtrend line, Bitcoin could rise to its all-time high of 111,000.
It can attempt to retest $980.
2025/07/02 10:58 KST
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