Bitcoin Drops 3.5% to $105,250 as Support Levels Falter

Bitcoin (BTC) has recently experienced a notable decline, slipping below key support levels and raising concerns about a potential deeper drop. 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, BTC could face a significant drop towards the $100,000 mark. This prediction is based on the current market conditions and the recent breach of two crucial support levels. The likelihood of revisiting the $100,000 level has increased, adding to the overall bearish sentiment surrounding Bitcoin.

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 suggested that if Bitcoin can maintain support above $105,000, there is potential for a significant rally. According to the analyst's forecast, the next leg up could potentially send BTC beyond $120,000 by late Q3 2025. However, this forecast is contingent on Bitcoin's ability to hold above the current support levels and avoid further declines.

The recent drop in Bitcoin's price has also been influenced by external factors, such as the ongoing feud between Elon Musk and Donald Trump. This political tension has contributed to the overall market volatility, further exacerbating the downward pressure on BTC.

In summary, Bitcoin is at risk of a deeper drop as it slips below key support levels. The cryptocurrency's price has been trending downward, approaching the $106,000 horizontal support level, and there is a risk of a further decline towards the $100,000 mark if uncertainty remains. Analysts predict that maintaining support above $105,000 could pave the way for a significant rally, potentially sending BTC beyond $120,000 by late Q3 2025. However, the current market conditions and external factors such as political tensions pose challenges to this optimistic outlook.