Bitcoin Drops 2.58% to $105,984.36 as Market Sentiment Weakens

Bitcoin's price has recently fallen below $105,000, marking a significant downturn in the cryptocurrency market. The decline, which saw Bitcoin drop to approximately $105,984.36, represents a 2.58% decrease over the past 24 hours. This drop comes after Bitcoin faced resistance above the $108,000 level, which has weakened bullish momentum. The cryptocurrency had previously been on an uptrend, but the recent drop has raised concerns among investors.

The decline in Bitcoin's price is part of a broader trend affecting the cryptocurrency market. Major altcoins such as Ethereum and Ripple, which had previously shown bullish signals alongside Bitcoin, are now exhibiting weakness. This lackluster price action is primarily due to a lack of risk appetite and cautious sentiment among investors. The overall market sentiment remains strikingly cautious, which has contributed to the recent price declines.

Despite the drop, some analysts remain optimistic as long as Bitcoin stays above the $106,000 support level. They suggest that there is nothing to worry about as long as this threshold is maintained. However, the path of least resistance is gradually shifting downward, with the Relative Strength Index (RSI) falling to the 50 midline from its recent peak. This indicates that bearish momentum may be gaining traction.

The decline in Bitcoin's price has also been influenced by external factors, such as escalating tensions between the United States and Iran. As investors seek safety in traditional assets like oil and gold, the demand for cryptocurrencies has decreased. This shift in investor sentiment has contributed to the recent price drops in the cryptocurrency market.

Additionally, the recent rise in the US Consumer Price Index (CPI) to 2.4% has also played a role in Bitcoin's price decline. The increase in CPI has led to a drop in Bitcoin's price below $108,000. However, investor buying pressure signals potential for a recovery toward $110,000. A break above $108,500 could signal a shift in momentum back to buyers. Below $105,000, further downside toward $102,000 may open, so risk management is key.

The Bitcoin price recovery above $110,000 seems to have created a fair value gap below $107,000, which the crypto analyst believes will need to be filled. If this lack of fundamental momentum persists, traders and institutions may start to take profits, which could cause the price to fall below $105,000. Bitcoin traded near $107,700 on June 12, 2025, after a volatile session that saw most major cryptocurrencies lose ground. Bitcoin price started a fresh increase above the $107,500 zone but is now struggling to clear $110,500 and might correct some gains. Bitcoin price is hovering just a few percentage points below its all-time high of $111,800.