BTC tests key support as market braces for potential downside continuation
Bitcoin’s price fell below $108,000 today, extending its recent decline as traders reacted to renewed profit-taking and fading momentum from earlier highs. The move places the world’s largest cryptocurrency back into a critical support zone, with analysts warning that a sustained break below this level could trigger further downside toward the $100,000 region.
Based on current chart structures, BTC/USD has been trading within a descending channel, repeatedly failing to break above the upper boundary near $120,000. The chart shows price rejection near a strong resistance zone between $120,000 and $125,000, followed by a sharp drop through the mid-range level.
The price has now retested the green support area around $108,000–$110,000, where demand historically reemerged. A clear close below this support could expose Bitcoin to the next major demand zone near $98,000–$100,000, highlighted by previous accumulation levels.
Trading volume has also increased notably during the decline, suggesting strong participation from sellers. This surge in volume often signals heightened volatility and possible trend continuation if buyers fail to defend the current range.
According to independent market analysts, Bitcoin’s short-term outlook remains cautious. According to BITX, “This breakdown aligns with a textbook channel pattern—unless BTC holds above $108K, we may see a deeper correction into the $100K zone before any sustainable rebound.”
BITX analyst emphasized the importance of sentiment shifts: “Institutional interest remains, but momentum indicators show exhaustion after the parabolic rally earlier this quarter. Bulls need to reclaim $112K quickly to restore confidence.”
Bitcoin’s recent slide below $108,000 underscores growing uncertainty among traders as technical patterns hint at potential continuation of the corrective phase. While long-term fundamentals remain intact, short-term sentiment appears fragile.
If support at $108K fails, eyes will turn toward the psychological $100K threshold, where strong buying interest could reemerge and shape Bitcoin’s next major move.
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.