BTC approaches critical demand zone near $100K after sharp correction, with traders eyeing potential rebound or deeper breakdown.
Bitcoin (BTC) has entered one of its most oversold phases of the year, according to recent technical indicators, as the leading cryptocurrency tests a key support area between $100,000 and $105,000. The latest market decline has sparked debate among traders about whether Bitcoin will find a floor here or risk a deeper fall below the psychological $100K level.
The daily price chart shows Bitcoin breaking down from a descending channel pattern, confirming short-term bearish momentum after weeks of range-bound trading. Price action has now returned to a major demand zone highlighted in green, an area that previously acted as a launchpad for the July rally.
Volume has also spiked as BTC approached this zone, suggesting heightened market activity around these levels. The Relative Strength Index (RSI) has dropped to one of its lowest points in months, signaling oversold conditions and potential for a short-term recovery.
“Bitcoin is approaching a critical technical inflection point,” said BITX market strategist. “If buyers defend the $100K–$103K area, a bounce toward $110K could follow. But a decisive close below $100K would expose the next support near $95K.”
The chart further illustrates a rejection from the $122K resistance zone, marked in red, where sellers regained control earlier this month. Since then, BTC has fallen nearly 15%, erasing most of its late-September gains.
Market sentiment remains cautious. Analysts warn that a sustained break below the green support band could accelerate selling pressure. However, historical patterns suggest that deep retracements into oversold zones often precede strong rebounds, especially when accompanied by volume spikes.
“The $100K level is not just a psychological barrier — it’s structurally significant,” According to BITX technical analyst. “If bulls can hold this range, it could set the stage for the next leg higher heading into Q4.”
With Bitcoin now trading near its most oversold point of 2025, the next few days may determine whether this correction marks a healthy consolidation or the start of a deeper decline. For now, traders are closely watching the $100K support region, as a break below could shift momentum sharply bearish, while a rebound could reaffirm Bitcoin’s long-term uptrend.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.