Bitcoin slips below $104K as liquidations exceed $1 billion amid the Israel-Iran conflict. Is BTC set to retest $100K?
The risk-on sentiment in the crypto market is weakening due to the recent Israeli attack on Iran. Amid escalating tensions, crypto market liquidations have surpassed $1 billion.
At press time, Bitcoin is trading below $104,000, with an intraday pullback of over 1%. Is BTC’s decline likely to reach the $100,000 level?
Bitcoin Price Analysis
On the 4-hour chart, Bitcoin recently reversed from the $110,266 resistance level, resulting in a correction of over 5% in the past three days. With the latest 4-hour candle closing below the 200-period EMA at $104,557, Bitcoin is testing a local support trendline.
Recent candles show lower price rejections, indicating that Bitcoin is struggling to hold above the critical trendline. BTC risks retesting the $101,763 support level, raising the probability of a drop toward the psychological $100,000 mark.
As bearish pressure builds, the MACD and signal lines have moved into negative territory, accompanied by a surge in bearish histogram bars on the daily chart. Thus, momentum indicators reveal a bearish bias, increasing the likelihood of a trendline breakdown.
However, a potential Morning Star pattern forming near critical support could trigger a bullish reversal, possibly pushing the price up to test the 100 EMA at $106,402.
Bitcoin Derivatives
In the derivatives market, trader interest in Bitcoin has declined significantly. Open interest has dropped by 4.18% to $69.81 billion. With this decline, bullish sentiment has weakened, as the OI-weighted funding rate has fallen to 0.0019% from a peak of 0.0082% on June 12.
This sudden shift coincides with $422 million in long liquidations over the past 24 hours, compared to just $21 million in short liquidations. Meanwhile, in the broader market, liquidations have surpassed $1.15 billion.
As a result, the long-to-short ratio has fallen to 0.9223, indicating a bearish tilt in open positions.
Bitcoin ETFs
Despite heightened short-term volatility stemming from Middle East tensions, U.S. Bitcoin spot ETFs continue to display strong investor confidence. On June 12, daily net inflows totaled $86.31 million, marking the fourth consecutive day of positive inflows.
So far this week, total net inflows have reached $1.07 billion, supporting the case for a continued long-term uptrend.
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.
