Bitcoin price falls below the $104,000 level and warns of a break of the support trendline to potentially retest the $100,000 psychological milestone.
After a sudden drop of 2.75% in the last 24 hours, Bitcoin has lost its footing above the $104,000 mark. The current price of BTC is $103,674, and the market capitalization remains at $2.052 trillion.
With rising supply suggesting a possible extended correction, attention is now focused on a crucial support trend line. Will the downtrend lead to a breakout that tests the $100,000 level?
Bitcoin price analysis
On the 4-hour chart, Bitcoin 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, the overwhelming supply in this region caused a rapid bearish reversal. This has caused a decline of 4.42% from the new all-time high.
The bearish pullback 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 trend line 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 rapid decline has caused the 4-hour RSI to fall below the halfway point, indicating increased selling pressure and the possibility of further decline.
Bitcoin ETFs Buy the Dip
In the midst of the overnight correction, BlackRock accumulated $741.41 million in Bitcoin yesterday. With this significant inflow, the total daily net inflow of US Spot Bitcoin ETFs reached $493.95 million.
This contrasts with an outflow of $128.17 million from Fidelity and three other ETFs. Furthermore, in the last 14 days, Bitcoin spot ETFs have seen positive inflows totaling $6.45 billion.
BTC Price Targets
Based on Fibonacci levels, a drop 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 case of a prolonged fall.
Conversely, a bullish reversal for Bitcoin would face resistance at the 50% Fibonacci level, with an upside target set at $110,730.
