Main Highlights
- Bitcoin is trading above $103,000, reflecting a 1.5% increase over the past 24 hours.
- The cryptocurrency could experience further volatility amid diminishing institutional demand.
Bitcoin Recovers to $103,000
Bitcoin’s price hovered around $103,000 in recent hours after rebounding from the key support level of $100,000 earlier this week. This short-term recovery is marred by weakening institutional demand, with Bitcoin Exchange-Traded Funds (ETFs) witnessing $137 million in outflows on Wednesday, marking six consecutive days of losses.
On-chain data suggests that Bitcoin might face additional selling pressure if the psychological barrier of $100,000 fails to hold. In a report released Wednesday, CryptoQuant noted that Bitcoin’s price is currently fluctuating near crucial support levels, and a breach could potentially trigger a steeper market correction.
The report further emphasized that if Bitcoin encounters sufficient selling pressure in the short term, it could drop below the $100,000 support, heading towards the next significant psychological level at $72,000.
Potential for Bitcoin to Retest $100,000 Support
The BTC/USD chart on a four-hour timeframe remains bearish after Bitcoin was rejected around its previously broken trend line earlier this week, resulting in an 8.18% decline on Tuesday. This downturn saw Bitcoin retest the 50% Fibonacci retracement level at $100,353 before recovering to the $103,000 mark on Wednesday.
As of press time, Bitcoin is trading in the vicinity of $103,000. The Relative Strength Index (RSI) at 38 indicates that Bitcoin is still under selling pressure, with the MACD lines also residing in bearish territory.
If the support level at $100,350 holds, Bitcoin’s price may approach the next resistance level at $106,435 in the coming hours and days. A sustained bullish run could allow Bitcoin to recover its weekly high above $109,000.
However, should this support level falter, Bitcoin may extend its decline towards the next daily support at $97,460. A further downward movement could lead BTC to trade below $90,000 for the first time in six months.
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