Bitcoin Drops 0.04% to $108,960 as Selling Pressure Intensifies

Bitcoin's price has experienced a notable decline, dropping below the $109,000 mark. According to market data, Bitcoin is currently trading at approximately $108,960. This drop comes after a period of consolidation where the cryptocurrency failed to sustain levels above $109,000 over the weekend. The decline has raised concerns among analysts about the potential for further price reductions.

The selling pressure intensified on Tuesday, increasing the likelihood of Bitcoin's price dropping to around $104,000. This downward trend is supported by technical analysis, which indicates that Bitcoin has been trading within a range defined by a downtrend line and moving averages. The relative strength index (RSI) near the midpoint suggests a lack of bullish momentum, further complicating the outlook for Bitcoin.

Analysts have identified key support levels at $104,500 and $100,000. If the price sustains below these levels, it could signal a bearish trend, potentially leading to a further decline. Conversely, a rebound above the moving averages and the downtrend line could invalidate the bearish setup, propelling the price towards the neckline of an inverse head-and-shoulders pattern. This pattern, if confirmed, could push Bitcoin's price towards new all-time highs.

The recent price action has been characterized by short-term profit-booking, as evidenced by the break below the moving averages. Buyers are expected to defend the $104,500 level vigorously, as a failure to do so could result in a further decline to the psychological support level of $100,000. The first sign of strength would be a break above the 20-day exponential moving average (EMA), which could clear the path for a rally towards the downtrend line and potentially challenge the all-time high of $111,980.

The current market sentiment remains cautious, with optimism waning as Bitcoin's price slipped into another short-term downtrend. The cryptocurrency market is known for its volatility, and investors are advised to conduct thorough research before making any investment decisions. The recent price movements underscore the importance of monitoring key support and resistance levels, as well as technical indicators, to navigate the volatile cryptocurrency landscape.