The recent market conditions have shown a shift towards bearish dominance in Bitcoin prices, with a potential 5% to 8% pullback on the horizon. While a dip below $100K may seem concerning, it could actually be a healthy correction after a strong rally. Momentum is slowing down, trading activity is changing, and investor sentiment is becoming more cautious.
Long-term holders and institutions remain optimistic despite the price drop. External factors, such as the escalating war-like situation, have been impacting crypto markets. The correction below $100K could be seen as a bullish signal, prompting long-term holders to accumulate more Bitcoin. Institutions like Metaplanet, Cardone Capital, and Blackrock continue to buy significant amounts of BTC, indicating confidence in a price rally.
The question on everyone’s mind is whether Bitcoin is heading back below $100K. The recent plunge from highs above $110K has brought the price to a critical support zone. Market conditions suggest that selling pressure has not yet subsided, potentially leading to a deeper correction down to $92,000 in the near future. Technical indicators like the Supertrend and RSI point towards a bearish continuation, making a strong upward movement challenging.
It is important to note the support levels at $98,817 and $93,500, as a break below these could signal new monthly lows for Bitcoin. The upcoming monthly close may lean towards a bearish outlook, presenting new opportunities for entry into the market. While the current trend remains bearish, a surge in buying pressure could potentially reverse this trajectory. However, the likelihood of Bitcoin dropping below $100K in the near future seems plausible based on the current market conditions.