Bitcoin Drops 5.5% in Three Days, Tests $104,000 Support

Bitcoin has been trading within a narrow range, currently around $104,322, with a slight increase of 0.14% over the last 24 hours. This price point has become a critical area for traders, who are closely monitoring the market for any signs of a potential breakout or correction. The recent price action has seen Bitcoin face rejection at the $106,000 level due to increased selling pressure, leading to a consolidation phase where the price has struggled to maintain momentum above $104,000.

The market has witnessed significant liquidations, with over $600 million in forced liquidations triggered as Bitcoin prices dipped below $104,000. This wave of liquidations suggests a potential market turning point, where a price reversal could be imminent. The recent price drop has also retested the $104,000 level for the first time in eleven days, indicating a period of uncertainty and volatility.

Analysts are closely watching to see if the bulls can defend the $104,000 level, as a failure to do so could lead to further declines. The price action over the past few days has shown a 5.5% decrease between May 27 and May 30, highlighting the challenges faced by Bitcoin in maintaining its upward trajectory. The current price level is crucial, as it will determine whether Bitcoin can regain its momentum or face further corrections.

The market's reaction to the recent price movements has been mixed, with some traders anticipating a potential breakout above $104,000, while others are cautious about the increased selling pressure. The consolidation phase has led to a period of uncertainty, where even lower lows could be tested. The recent price drop has also put Bitcoin into a consolidation phase, where the price has been fluctuating within a narrow range.

The market's sentiment remains divided, with some traders optimistic about Bitcoin's potential to recover and break above $104,000, while others are concerned about the increased selling pressure and the potential for further declines. The recent price action has highlighted the importance of the $104,000 level, as it will determine the market's direction in the coming days. Traders are closely monitoring the market for any signs of a potential breakout or correction, as the price action continues to unfold.