Bitcoin Faces 7.9% Drop as Price Struggles Below $109,300 Resistance

Bitcoin's price action indicates a potential decline below the $100,000 mark. On the daily chart, Bitcoin is trading within a descending broadening wedge pattern, where the price oscillates between two downward-sloping trendlines that are gradually widening. Each time Bitcoin reaches the upper boundary of this channel, it encounters resistance and moves lower, creating a series of lower highs. Simultaneously, the price bounces off the lower boundary but with decreasing lows, indicating weakness.

Currently, Bitcoin's price is around $106,000 after failing to surpass the upper trendline once again. The chart suggests that this rejection could trigger a new wave of selling pressure, with a potential drop of about 7.9% from the current level. This would place the Bitcoin price near the $97,600 area, which is identified as the next significant support on the chart.

The upper boundary of the channel has become a strong resistance zone. This resistance has prevented Bitcoin from breaking out higher several times since mid-May. Each failed attempt at a breakout has resulted in sharp declines, reinforcing the bearish sentiment in the market. As long as Bitcoin remains below this resistance, the short-term bias remains bearish.

The chart highlights a key level around $97,600, where the price could find its next significant support. A rebound from this area could set the stage for another attempt to move higher, but a break below it could lead to a deeper correction.

Bitcoin’s momentum appears to be weakening. The repeated rejections at the descending trendline and the lower highs on each rally indicate that sellers are still in control. Until Bitcoin's price manages to break above this descending resistance with strong volume, the risk of another dip below $100,000 remains high.

Bitcoin's price has been fluctuating around $106,000, unable to break above the upper trendline, suggesting a potential slide below $100,000. The 14-day stochastic indicator signals a renewed sell-off after being rejected from the upper boundary of its recent consolidation pattern. This rejection indicates that the key resistance level at $109,300 remains a significant barrier for Bitcoin's price movement.

Bitcoin has shown resilience, holding its ground just below the $105,000 mark after a modest dip. However, the price is currently consolidating just below the critical $109,300 resistance level, which has acted as a ceiling for over a month. This consolidation suggests that Bitcoin's price could be preparing for a significant move, either upwards or downwards, depending on market sentiment and investor behavior.

The recent exit of retail traders has pushed Bitcoin near the $100,000 support level. However, institutional investors and ETFs remain confident, signaling long-term bullish sentiment. This confidence could provide a buffer against a sharp decline, but the overall market sentiment remains cautious.

The Bitcoin dominance index has hit 66%, indicating that altcoins are struggling to gain traction. This dominance suggests that investors are favoring Bitcoin over other cryptocurrencies, which could further limit the price movement of altcoins. The current market conditions highlight the importance of Bitcoin's price movement in determining the overall direction of the cryptocurrency market.

The technical analysis of Bitcoin's price movement suggests that the key resistance level at $109,300 remains a significant barrier. The 14-day stochastic indicator signals a potential sell-off, which could push Bitcoin's price below $100,000. However, the resilience shown by Bitcoin in holding its ground just below the $105,000 mark indicates that there is still significant support for the cryptocurrency.

The recent exit of retail traders and the consolidation of Bitcoin's price below the $109,300 resistance level suggest that the market is preparing for a significant move. The long-term bullish sentiment from institutional investors and ETFs could provide a buffer against a sharp decline, but the overall market sentiment remains cautious. The Bitcoin dominance index hitting 66% further highlights the importance of Bitcoin's price movement in determining the overall direction of the cryptocurrency market.