Recent Bitcoin analysis shows difficulties maintaining key support at $106,600, which may lead to further declines.
Support Levels and Short-Term Prospects
Analyst Justin Bennett highlighted Bitcoin's struggles to stay above the $106,600 mark. After an unsuccessful recovery attempt, another retest of the $100,000 level might occur. Bennett emphasized that if Bitcoin fails to stabilize above the $106,000–$107,000 levels long-term, it could face downward risks. He also mentioned potential increased retail investor activity over the weekend, which might lead to price consolidation.
Impact of Institutional Moves
The analyst noted a changing dynamic in the Bitcoin market, pointing out that large holders, or 'whales,' have started exiting long positions to form shorts. This increasing selling pressure from whales poses risks for smaller investors and can lead to sudden price volatility. According to Bennett, whale actions negatively impact smaller investors and create uncertainty in the market.
USDT.D Graph and Potential Scenarios
Bennett drew attention to the Tether (USDT.D) dominance rate, which could signal bearish trends for Bitcoin. An increase in USDT.D often indicates a shift from crypto assets to stablecoins, amplifying selling pressure. A move toward a 5% threshold in USDT.D after weekly closure could indicate sustained selling for Bitcoin. At the time of writing, Bitcoin's price hit $105,658, reflecting a 1.6% decline over 24 hours.
The analysis of Bitcoin's trajectory highlights the influence of large investors and stablecoin movements. Monitoring price fluctuations and market indicators remains crucial, as failure to reclaim previous support levels could lead to further declines.
