Bitcoin Faces Downward Pressure: Is $100K the Next Stop?
Bitcoin (BTC) has seen a notable pullback in recent days, with analysts warning of further declines—potentially below the psychological $100,000 threshold. On Wednesday, June 18, BTC dropped to $104,650, marking a 6.52% decline from its yearly high. The futures and options markets are flashing bearish signals, suggesting that the downturn may not be over yet.
Why Is Bitcoin Struggling?
The crypto king has faced headwinds from multiple directions:
- Futures Market Sentiment: Open interest and funding rates indicate weakening bullish momentum.
- Options Data: Put/Call ratios suggest traders are hedging against further downside.
- Macroeconomic Factors: Rising interest rates and risk-off sentiment in traditional markets are spilling over into crypto.
Key Levels to Watch
If Bitcoin fails to hold above $100,000, the next major support zones could be:
- $95,000: A critical psychological and technical level.
- $90,000: Previous resistance-turned-support from earlier this year.
- $85,000: A long-term Fibonacci retracement level.
What’s Next for BTC?
While the short-term outlook appears bearish, long-term holders remain optimistic. Historical data shows that Bitcoin often experiences sharp corrections before resuming its upward trajectory. However, traders should monitor:
- Institutional Flows: ETF inflows/outflows could dictate near-term price action.
- On-Chain Metrics: Exchange reserves and whale activity may signal accumulation or distribution.
- Regulatory News: Any unexpected policy shifts could trigger volatility.
For now, caution is advised—especially for leveraged traders. A break below $100K could accelerate selling pressure, while a rebound above $110K might reignite bullish momentum.
