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.
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.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
