Bitcoin Faces Sharp Decline Risk Below $100,000 Support

Bitcoin is currently facing a critical support level at $100,000, with analysts warning that a breakdown below this point could trigger a sharp decline. According to Altcoin Sherpa, the next key support level to watch would be $96,000 if the $100,000 level is breached. This level is significant as it aligns with the point of control from November 2024 and the 200-day exponential moving average, suggesting it could act as a potential bounce zone.

Volume data indicates that there has been dense activity between $95,000 and $100,000, highlighting strong previous interest in this range. A break below $100,000 could potentially trigger a sharp move toward the $96,000 liquidity pocket. Altcoin Sherpa emphasized that the $100,000 level remains pivotal and advised watching Bitcoin’s first reaction at this level before expecting further downside.

Skew also highlighted the importance of the $102,000 to $100,000 range, noting that Bitcoin has broken below the daily open, monthly open, and is hovering just above a key low-volume area. The chart shows a clean rejection near $104,463, followed by consecutive lower highs and a failed retest of prior support. The price has dipped below the daily open at $102,248 and now sits on thin liquidity, with limited volume support until around $97,000.

Volume profile analysis suggests that Bitcoin previously consolidated around $102K to $104K, forming the last high-volume node. Below this zone, the price may fall faster due to weaker support and limited bids, especially on a weekend when order books are thinner. Skew emphasized that the reaction in this zone will be crucial for short-term price direction.

Bitcoin’s daily Relative Strength Index (RSI) has fallen to 39.51, indicating weakening bullish momentum. The RSI has consistently trended downward since mid-May and now sits below its signal line, which stands at 51.60. The indicator stayed mostly above 50 during April and early May, suggesting earlier strength. However, the recent crossover and decline below the 40 level indicate that sellers are gaining control. If the RSI continues falling, it may enter oversold territory below 30, typically seen during extended downtrends.

The sustained divergence from the signal line also shows limited buying pressure. Traders often view this setup as a sign of increasing bearish momentum, especially when the price breaks below support levels alongside falling RSI. Altcoin Sherpa and Skew both highlighted weak weekend liquidity and a low-volume gap below current levels, suggesting that the market may be more susceptible to sharp movements during this period.