Bitcoin News Today: Bitcoin's 1.63% Drop and Institutional Selling Trigger Fears of Sharp Decline Below $100k

Bitcoin faces mounting bearish pressure as leading analyst Captain Faibik highlights a potential sharp decline below $100,000. The cryptocurrency is currently consolidating within a "rising wedge" pattern on its daily chart—a technical indicator often associated with trend reversals. Faibik notes that the price has been trading near the upper half of this wedge, signaling weakening momentum in the current uptrend. A critical support level at $113,000 has become pivotal; a daily close below this threshold could confirm the breakdown and trigger a correction toward $95,000–$98,000 [1].

Ask Aime: Is Bitcoin about to fall sharply, as Captain Faibik warns?

Recent market activity amplifies concerns. Galaxy Digital reportedly sold 10,000 BTC (valued at approximately $1.18 billion) and withdrew $370 million in USDT, causing Bitcoin to drop 3% in one hour and liquidating around $144 million in long positions [1]. This large-scale sell-off, coupled with thin trading volumes, has accelerated downward pressure. Analysts caution that institutional selling during low-liquidity periods can exacerbate price declines, particularly when key support levels are in play.

Faibik also warns of a "bearish PO3 trap," a scenario where temporary price rallies lure buyers before reversing sharply lower. He argues that this pattern suggests institutional investors may have already exited near recent highs, leaving retail traders vulnerable to a liquidity sweep. Despite a 23% increase in daily trading volume to $87.46 billion, much of this activity reflects profit-taking by whales rather than new buying interest. Retail investors entering during this phase risk being caught in a trap for late buyers [1].

Market data underscores Bitcoin’s fragility. As of the latest report, the asset traded at $115,968, reflecting a 1.63% drop in 24 hours and a 3.58% weekly decline [1]. Its inability to break above key resistance levels—$116,000–$120,000—has created a tight trading range, signaling indecision among market participants. On-chain analysis from Glassnode further highlights an "air gap" in the $110,000–$117,000 range, indicating weak accumulation and a lack of sustained bullish momentum [2].

Institutional exposure remains a focal concern. Companies holding significant Bitcoin reserves face heightened risks in a prolonged downturn. While short-term technical indicators dominate current analysis, macroeconomic factors like regulatory developments and broader market sentiment could influence outcomes. Faibik emphasizes that the breakdown scenario is increasingly plausible, given structural weaknesses in Bitcoin’s near-term price action [1].

Traders are advised to adopt caution, particularly as volume spikes during a breakdown could intensify the sell-off. The absence of sustained buying pressure in critical resistance ranges further underscores the market’s vulnerability. Investors are urged to monitor $113,000 closely; confirmation of a breakdown would likely accelerate downward momentum and reshape the short-term outlook [1].

Source: [1] [Bitcoin (BTC) Price Could Crash Below $100k, Expert Warns] [https://blockonomi.com/bitcoin-btc-price-could-crash-below-100k-expert-warns-heres-why/]; [2] [Why Is Bitcoin Holding Steady as XRP, Solana, Dogecoin ...] [https://decrypt.co/331559/bitcoin-steady-altcoins-solana-xrp-waver].