Bitcoin Drops 1.27% to $105,968 Amid U.S. Legislative Activity

Bitcoin's recent price movements have sparked concerns among analysts, who suggest that the cryptocurrency may test the $100,000 level as it dips below key support levels. On July 1, 2025, Bitcoin's price experienced a notable decline, slipping to $105,905 after losing support above the $107,000 level. This 1.22% drop occurred amidst heightened legislative activity in the U.S., raising concerns among analysts about the cryptocurrency's near-term prospects.

Analysts have highlighted the potential for a short-term consolidation phase, with key resistance near $109,000 proving difficult to breach. According to the analyst's forecast, the break below moving averages suggests increased profit-taking, but strong buyer interest remains at $104,500, a pivotal support zone. The cryptocurrency's price has been trading at $105,968.09 USDT, reflecting a 1.27% decline. This drop has raised concerns among analysts, who have warned of a potential pullback to the $100,000-$101,000 zone.

Bitcoin's price action reveals critical support levels under pressure, signaling potential volatility ahead for BTC investors. The cryptocurrency's price has failed to regain momentum after briefly falling below $100,000, which has raised concerns among analysts. The analyst's warning is further supported by the fact that Bitcoin's price has failed to regain momentum after briefly falling below $100,000. This has led to speculation that the cryptocurrency could face a potential 40% drop.

Analysts have also noted that Bitcoin's price has strong support between $104,429 and $107,637. At this price range, over 2 million addresses are in profit. However, traders should be cautious of a potential double top pattern forming above $100,000, although a major crash seems unlikely. The cryptocurrency's price has been facing selling near $109,000, but the shallow pullback suggests that the uptrend may resume.

The cryptocurrency market saw modest declines as market sentiment turned cautious following the passage of a controversial bill. The macro uncertainty combined with Bitcoin's ongoing range-bound technical structure is keeping momentum subdued. The consensus among traders is that early July dip buys may age well, though the exact bottom might still be slightly lower. The coming sessions could determine whether Bitcoin confirms support or heads for one last sweep before lift-off.

Some traders believe that Bitcoin is currently testing the midpoint of a significant 8-year ascending channel. A confirmed breakout above the resistance line would mark a major technical shift and could invalidate prior bearish expectations, potentially setting the stage for an aggressive leg higher. Meanwhile, others have downplayed fears around Bitcoin's recent drop, calling it a healthy liquidity sweep with strong volume and baseline-resetting funding rates. They see a potential move to $104,000 as an optimal long entry, though a breakout rally could also launch from current levels.