Bitcoin Drops 10% Below $104,000 After Bullish Momentum Fades

Bitcoin's price has recently experienced a notable decline, falling below the $104,000 mark. This drop follows a period of sustained buying pressure and renewed market optimism, which had driven the cryptocurrency to new heights. The price had been holding steady around the $104,000 level, but bulls began to struggle with maintaining upward momentum as new all-time highs came within reach. The resistance around the $104,000 mark has proven to be a critical barrier, and the price has since retreated from this level.

The recent price action has been characterized by a sharp rally followed by a correction. Bitcoin reached a local bottom of $74,000 in mid-April and has since seen a market rebound, creating a price uptrend that lasted over the past three weeks. However, the price couldn't sustain the bullish momentum after its ascent to the current all-time-high price of $108,786 in January, leading to a crash. This volatility has wiped out significant gains, with $31 million in value being erased from the market.

Analysts had predicted that if Bitcoin breached the $104,000 level, the next target would be $120,000, a level seen as "conservative" by some. However, the price has not been able to sustain above this level, and the next move remains uncertain. The current local highs for BTC/USD have breached the $104,000 mark, and Fibonacci retracement analysis reveals that the price is now in a key zone. If Bitcoin breaks above the $104,000 resistance level, it could pave the way for testing new all-time highs. Conversely, a drop below the $97,000 support level could signal further downside.

The recent price action has also highlighted the divergence in entry prices among Bitcoin whales. The resistance around the $104,000 mark may take time to break as it represents a critical barrier before the next significant move. The market is currently in a state of consolidation, with signals indicating a potential breakout soon. However, the direction of this breakout remains uncertain, and the market is closely watching for any signs of a new trend.