Bitcoin Drops 4% Below $104,000, Drags Altcoins Down

Bitcoin's value dropped below $104,000, causing a significant downturn in the cryptocurrency market. This decline marked a shift from the previous day when Bitcoin had reclaimed the $108,000 level after successfully retesting the $104,000 support over the weekend. The recent volatility in the cryptocurrency market can be attributed to several factors, including geopolitical tensions and broader economic uncertainties.

Bitcoin's price has been under pressure, dropping nearly 4% in the past 24 hours and breaching key technical support levels. This downward trend has had a ripple effect across the cryptocurrency landscape, with many altcoins following suit. The sell-off was particularly pronounced among top altcoins, which saw significant declines in value. Despite the recent setbacks, Bitcoin remains in a bullish consolidation phase following a major weekly breakout. Analysts had previously noted the formation of a bull flag pattern, suggesting that a break above $105,757 could trigger a move toward new highs. However, the current market conditions have not yet supported this prediction.

The recent volatility in the cryptocurrency market has been exacerbated by geopolitical tensions, particularly the clashes between Israel and Iran. These conflicts temporarily dragged Bitcoin's value below $104,000, highlighting the sensitivity of the cryptocurrency market to global events. Despite these challenges, some cryptocurrencies, such as BNB, have shown resilience, pushing through the volatility and maintaining their value. This resilience can be attributed to the growth in transaction activity and the increasing adoption of decentralized exchanges.

The broader economic landscape has also played a role in the recent market movements. Despite mounting uncertainty and recession fears, Bitcoin has managed to trade just 4% below its all-time high of $111,965, which was reached on May 22. This relative stability can be seen as a positive sign for the cryptocurrency market, indicating that it may be able to weather broader economic storms. However, the ongoing consolidation between $100,000 and $110,000 has formed a wedge pattern, which often precedes significant directional moves. This pattern suggests that the market may be poised for a breakout in either direction, depending on the prevailing market conditions.

With Bitcoin dipping under $104,000 and dragging the wider market lower, attention now turns to macro events such as the Federal Reserve’s FOMC decision. Investors are watching closely for signs of dovish policy shifts, which could provide fresh fuel for a market rebound—or extend the current downtrend. The downturn wasn’t isolated to Bitcoin. Ethereum (ETH), the second-largest cryptocurrency, slid 6.4% over the past 24 hours to $2,460, extending its weekly loss to 10.12%. Solana (SOL) also posted a sharp decline, falling 7% to $146. Ripple’s XRP fell in tandem, down 7.16% on the day to $2.14, despite recent surges in network activity. Binance Coin (BNB) was also hit, retreating 3.5% to $641.