Bitcoin Price Drops 4% to $107,472 Amid Bearish Sentiment

Bitcoin (BTC) price has been experiencing a downward trend since reaching its all-time high of around $112k in mid-May 2025. Despite the high demand for spot Bitcoin from institutional investors, the bullish sentiment has not been rejuvenated. The price of BTC has faced resistance around $108k in recent days, dropping slightly to trade at about $107,472 on Thursday, June 26, during the mid-North American session.

Following a 90-day pause on most reciprocal tariffs in April, BTC price showed an impressive comeback. However, a potential reversal pattern has been forming, with bearish sentiment growing amid increasing demand from institutional investors, notably led by Strategy and Metaplanet.

Technical analysis indicates that the BTC price, in the daily timeframe, has been forming a falling trend following a bearish breakout from a rising wedge formed in late May 2025. The midterm bearish sentiment is bolstered by a falling daily Relative Strength Index (RSI) and the MACD line crossing below the zero line. From this perspective, BTC price is well-positioned to retest the support level above $92k in the coming weeks. The ultimate support level for BTC price was established above $76k earlier this year.

Bitcoin price faces intensified bearish sentiment due to cumulative short liquidation leverage of about $12 billion around $112k. This suggests that more institutional investors are seeking to suppress BTC price through futures and leveraged markets to acquire as many coins as possible before the highly anticipated parabolic rally. On-chain data reveals that institutional investors have been aggressively accumulating more BTC through leveraging equity markets. According to market data, 251 entities hold more than 3.47 million BTCs in their respective treasuries.

In summary, the Bitcoin price may retest $92k first before reaching $120k in the midterm due to technical headwinds and high cumulative short liquidation leverage. The bearish sentiment is further fueled by institutional investors' strategies to accumulate more BTC, which may temporarily suppress the price. However, the ultimate support level remains above $76k, indicating a potential rebound in the long term.