Bitcoin continues to fluctuate around the $105,000 mark following a sharp drop. An analysis of the current situation indicates market instability.
Current Situation in the Bitcoin Market
As of the publication time, Bitcoin has climbed back above $105,000 after a 4% drop on June 13, when it fell below $104,000 amid rising tensions in the Middle East that triggered panic across the crypto market, wiping billions off its market cap. The swift growth after a 1% decline is encouraging for investors, however, experts caution about the market's shakiness.
Trader Sentiments and Their Impact on the Market
Analysis from CryptoQuant shows that the Bitcoin Sentiment Index, a tool for tracking market sentiment, has dropped to 46%. This is below the neutral 50% mark, indicating traders' lean towards a bearish outlook. It is noteworthy that the index peaked above 80% in early June when market sentiment was much more positive.
Future of Bitcoin: Resistance and Support Levels
Currently, Bitcoin is facing resistance at around $108,000 while support at $104.7 must hold firm, creating concern among analysts. Despite the recent rise, trading activity has not increased significantly, making the price movement uncertain.
Under current conditions, the Bitcoin market remains under pressure from bearish sentiments and uncertainty. Monitoring the support and resistance levels in the coming days will be crucial.
