Bitcoin Drops Below $106k Amid Geopolitical Tensions, Investors Hold Firm

Bitcoin's price has recently fallen below $106k, indicating a bearish short-term outlook. Despite this, on-chain metrics suggest that there has been no significant sell-off, implying that investors are holding onto their assets. The price is expected to potentially drop to $102.5k or even $100k, but a breakdown below $100k is considered unlikely.

Geopolitical tensions, inflation concerns, and economic uncertainty have led traditional investors to seek safe havens like gold. However, Bitcoin has managed to maintain its value above the $100k mark, signaling that crypto investors are increasingly viewing it as a store of value.

According to CryptoQuant Insights, the change in netflows has not been substantial, indicating that holders are not rushing to exit the market. The Open Interest on centralized exchanges has also not seen a large drop, suggesting that speculative interest remains high despite market fears. This could be another indication that investors are adopting a wait-and-watch approach.

Crypto analyst Axel Adler Jr noted that the current reading is at 46%, just below the neutral threshold of 50%. For Bitcoin to resume its previous uptrend, the index would need to climb beyond 60%-65%, requiring sustained demand and capital influx. The 1-day chart also reveals a bearish bias for Bitcoin in the coming days, with selling pressure dominant and downward momentum prevalent.

Despite the short-term volatility and fear, uncertainty, and doubt (FUD) in the market, the resilience of Bitcoin holders has been notable. Retail investors might consider adopting a similar wait-and-watch stance in the face of current market conditions.