Bitcoin Drops Below $107,000, Faces Risk of $100,000 Revisit

Bitcoin (BTC) has recently experienced a notable decline, slipping below key support levels, which has raised concerns about a potential deeper drop in its price. The cryptocurrency has been trending downward, approaching the $106,000 horizontal support level. This downward movement has sparked speculation about whether a bounce will occur from this level or if the dip will continue further.

The daily timeframe chart indicates that if uncertainty persists, the price of BTC could drop towards $100,000. This scenario is particularly concerning as it suggests that the cryptocurrency may revisit the $100,000 level, which could signal a more significant correction. The recent price action has shown that BTC is struggling to maintain its position above critical support levels, which has historically been a precursor to further declines.

Bitcoin pulled back to $105,250 on Tuesday after failing to cross above the $109,000 mark on Sunday and Monday. Analysts said in a market report that Bitcoin could have formed a local top or may enter a period of consolidation. The upsloping moving averages signal a slight edge to the bulls, but the relative strength index (RSI) near the midpoint suggests a lack of bullish momentum. If the price slips and sustains below the moving averages, the BTC/USDT pair could slump to $104,500 and below that to $100,000. Such a move retains the pair inside the bearish descending triangle pattern.

Analysts have noted that if Bitcoin can sustain support above $105,000, there is a possibility of a rally that could push the price beyond $120,000 by late Q3 2025. However, the current price action indicates that this support level is under threat, which could derail these optimistic forecasts. The technical barriers at the $87,000 level, where three significant technical indicators converge, add to the complexity of the situation. This level has been identified as a critical resistance zone, and any failure to break through it could further exacerbate the downward trend.

The broader market sentiment also plays a role in Bitcoin's price movements. Recent events, such as the feud between Elon Musk and Donald Trump, have contributed to market volatility, with Bitcoin dropping below $107,000 as a result. This highlights the sensitivity of the cryptocurrency market to external factors and the potential for further price fluctuations.

In summary, Bitcoin is at risk of a deeper drop as it slips below key support levels. The current price action suggests that the cryptocurrency could revisit the $100,000 level, which would be a significant setback. While there is potential for a rally if support levels hold, the technical barriers and market sentiment indicate that the path forward is uncertain. Investors and traders will need to closely monitor the situation as it develops, as any further declines could have significant implications for the broader cryptocurrency market.