Market Performance and Key Levels
Bitcoin (BTCUSD) faced a significant setback, dropping 7.26% week-to-date and breaking below the key 100,000 support level for the first time in four months. The sharp decline followed the recent formation of a ‘death cross’ in the daily chart and culminated in an intraday low of 98,917 on Tuesday, triggering heightened market anxiety and signalling growing bearish momentum before a modest rebound on Wednesday to 101,800.
The sell-off was driven by a wave of forced liquidations, wiping out over $2 billion in speculative futures positions across crypto markets. It followed the steep selloff in tech stocks after valuation fears sparked a tumble on Wall Street. That said, despite the volatility, Bitcoin retains a positive long-term outlook, still up 14% year-to-date.
If the 50% Fibonacci retracement level of the April-October upleg at 100,316 continues to hold as support, and the price closes above the October monthly low of 102,300, Bitcoin could extend its recovery toward the next key resistance at 106,416, followed by 107,300, which is the floor of a three-month consolidation. Higher up, strong resistance is expected near the death cross between the 20- and 200-day simple moving averages (SMAs) in the 109,000-110,000 area.
Technical Indicators and Potential Scenarios
The RSI is ticking up near the oversold territory, suggesting selling momentum may be easing and a short-term rebound could be on the horizon. However, the MACD remains weak, extending downside pressure and indicating fragile investor sentiment. If selling accelerates, Bitcoin could slide toward the June 22 low of 98,100, with deeper levels from May and June at 94,216 and 93,000.
Current Market Sentiment and Outlook
Bitcoin has stabilized, hovering above the psychologically important 100,000 support zone after breaking below a broadening ‘megaphone formation’, which reflects the volatility and market indecision over the last three months. Despite this recovery, investor sentiment remains fragile, and a break back above 107,300 is needed to ease bearish pressure in the broader cryptocurrency market.