Bitcoin is once again dropping lower after failing to breach the $108K resistance level. This has raised concerns among investors about a potential deeper correction as the asset remains below the crucial $100,000 mark.
Technical Analysis
According to the latest technical analysis, BTC’s price has been consolidating below the $108K level and has broken the $100K support zone. If this level cannot hold, a deeper drop toward the $92K area can be expected in the coming weeks. The RSI showing values below 50% further indicates the likelihood of this bearish scenario.
Daily Chart Analysis
On the daily chart, it is evident that BTC's decline is linked to active selling by investors holding the asset for over six months. Their sales contribute to the price decline and lack of upward momentum. Despite this, the current selling volume is lower than it was last summer, which leaves hope for pressure reduction and potential growth.
Blockchain Analysis
The Long-Term Holder SOPR indicator demonstrates high levels of profit realization by holders, limiting market growth. This is due to BTC sales to secure profits, yet current sales volumes are lower than a year ago. Thus, if the pressure decreases, Bitcoin's growth might become possible.
Bitcoin’s market is in a state of uncertainty; having failed to breach the resistance level, it faces pressure from profit-taking investors. Future developments could either push the price upwards or contribute to its further decline.
