Bitcoin drops under $100K to the lowest point in 6 months through sell-offs and low demand, and a recovery to the level of $100.7 is required to turn the tide.
Bitcoin has crashed to its lowest in six months, falling below the critical point of $100,000, in the face of increased selling pressure in the market.
The cryptocurrency lost major technical support and borrowed liquidity at lower levels than before, indicating bearish market momentum in the short term.
This swift decline is preceded by a rejection at around $107K that led to a possible downside test that was soon realized.
The rejection of BTC at around 107,000, as reported by CryptoMichNL on X, triggered a collapse through the 100,000 region, pushing the price downwards.
Source- X
The long-term holders intensified the bearish pressure through heavy selling. Statistics show that long-term investors bought nearly 815,000 BTC, worth an estimated 79 billion dollars, over the last month.
Such a large offloading is accompanied by spot Bitcoin ETF outflows and reduced institutional demand. Futures funding has turned negative, and liquidations have exceeded $550 million.
However, there are indications of a possible floor. JPMorgan analysts project the cost of production of Bitcoin at approximately 94,000, which frequently serves as a historic price floor.
In spite of the crash, approximately 72 percent of the BTC supply is still in profit. This generates a base of holders who are less prone to selling.
Recovery of $100.7 is a critical threshold that may turn the tide in the right direction. Nevertheless, the current trend at shorter time periods is still bearish pending confirmation.
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