Bitcoin Price Drops 3% Amid Selling Pressure

Bitcoin's price is currently trading around $104,500, exhibiting a narrow range following recent failed attempts to break above the $108,000 zone. Despite brief spikes above key resistance levels, the price action has remained capped below a declining trendline. This sideways movement has raised questions about why Bitcoin's price is going down today, despite solid on-chain support and strong liquidity near $104,000.

On the 4-hour chart, Bitcoin remains trapped within a symmetrical triangle, with support at $103,400 and resistance at $105,600. The price has been consolidating below the 20/50/100 EMA cluster ($104,950–$105,792), while the 200 EMA at $106,672 continues to act as a strong ceiling. This compression is mirrored by shrinking Bollinger Band width and a falling ATR, indicating reduced Bitcoin price volatility. The RSI sits at 44.4, showing a mild bearish bias without being oversold. The MACD is flat near the zero line with histogram bars tightening, a typical setup before a volatility expansion. The latest Parabolic SAR dots are now positioned above price candles, reinforcing near-term downside pressure, while the Directional Movement Index shows a weakening ADX, implying indecision.

One major reason for Bitcoin's price decline today is visible on the Smart Money Concept chart. The recent push into the $108,000–$109,000 liquidity zone was met with aggressive selling, as evidenced by a change-of-character (CHoCH) and rejection near the previous BOS area. The failed attempts to establish a higher high above this weak liquidity zone have since triggered a return to equilibrium levels. Bitcoin is currently trading just above a significant demand block near $103,400. A sustained close below this could expose deeper support layers at $102,000 and $100,600. On the flip side, bulls will need to clear $105,800 to invalidate the current lower high structure.

Looking at Deribit options expiring on June 21, a large chunk of open interest is concentrated around the $105,000 and $104,000 strikes, with puts outweighing calls slightly in both size and implied volatility. The implied volatility for ATM contracts remains around 31% for June 21 expiry, hinting at muted expectations for a breakout within the next 24 hours. This aligns with the tight consolidation seen across the 30-minute and 4-hour charts.

If Bitcoin's price can reclaim $105,500 on a closing basis and break above the descending resistance trendline, bulls may attempt a rally toward $107,000 and eventually retest $108,500. However, the lack of momentum and flattening volume suggest upside may be capped unless fueled by a catalyst. Conversely, if the $103,400–$104,000 support zone fails to hold, Bitcoin could retest $102,000 and possibly $100,600 — both major liquidity pockets. A break below $100K would only be likely if broader macro sentiment turns sharply risk-off.