Bitcoin Drops 2.5% Facing Bearish Pressure Near $105,000 Support

Bitcoin, the world's leading cryptocurrency, has recently experienced a notable shift in its price dynamics. Despite losing a major support level, analysts remain optimistic about its long-term bullish trend. The cryptocurrency reached an all-time high of $111,814 on May 22, but since then, it has faced multiple failed attempts to break above this level, leading to increased bearish pressure.

Over the past few days, the price action has formed a sequence of lower highs on the 4-hour timeframe, indicating that bullish momentum may be waning. Technical analysis suggests that this pattern could signal a shift from bullish control to bearish dominance. The repeated failure to break through the $111,000 to $112,000 resistance zone has led to a weakening of support around $105,000, which could give way in the near future.

Analysts have highlighted a potential double top structure, which is a technical formation often associated with a market reversal. If this pattern plays out, Bitcoin's price could drop to a support area between $101,000 and $102,000. This zone previously acted as a strong support level between May 14 and May 19, and Bitcoin rebounded from this level to reach its all-time high.

Despite the short-term bearish signals, the long-term bull market narrative remains dominant. Bitcoin is currently trading at $105,272, down by 2.5% in the past 24 hours. The focus is now on holding above the $105,000 support level. If Bitcoin fails to maintain this level, it could lead to a cascading downturn towards $101,000 during the weekend.

A widely followed analyst and trader has expressed confidence in Bitcoin's ability to "bounce" back, citing strong support at around the $104,000 price level. This optimism is based on the belief that the current price action is a temporary setback in an otherwise strong bullish trend. The analyst's outlook suggests that Bitcoin could rebound from its current levels, potentially reaching new highs in the future.

In summary, while Bitcoin has lost a major support level and is currently facing bearish pressure, analysts remain optimistic about its long-term prospects. The cryptocurrency's price dynamics are being closely monitored, and investors are advised to stay informed about key resistance levels and market developments to make informed decisions.