Bitcoin Stabilizes Around $105,000 After 3% Weekly Decline

Bitcoin has been experiencing a period of stabilization around $106,000 following a three-day correction that resulted in a near 3% decline for the week. The cryptocurrency is currently consolidating around $105,000, with a critical support level at $103,000 that could determine its next move. If Bitcoin maintains this key support, it could trigger a bull rally to $120,000. However, a failure to hold above $103,000 could lead to a deeper correction.

The broader cryptocurrency market shows signs of exhaustion, extending May’s correction. Despite this, institutional demand remains strong, with significant spot Bitcoin ETF inflows and large-scale BTC purchase plans. This suggests that institutions are not deterred by short-term market fluctuations and continue to view Bitcoin as a valuable asset.

Bitcoin's price action has been closely watched, with a critical Fair Value Gap (FVG) between $106,266 and $106,723 being tested. This level served as key support in May, defending five sell-offs. A decisive daily close above $106,723 could signal strength and open the path toward $120,000. However, a breakdown of this level could decrease the odds of a bounce and increase the risk of a deeper correction.

Analysts have noted that a consolidation between $103,000 and $108,000 is more likely in the near term, as the $100,000 support holds firm. A deeper correction to $97,000–$93,000 could occur if $103,000 breaks, according to Fibonacci levels. This highlights the importance of the $103,000 support level in maintaining bullish momentum.

The long-term outlook for Bitcoin remains bullish as long as it defends the $103,000 or holds above the $100,000 psychological level. A successful breakout above $106,723 could accelerate the bullish momentum and propel BTC toward a new all-time high, potentially $120,000. On the contrary, a deeper retest of $101,000 to $100,000 may offer a high-conviction buying opportunity before the next upward wave.

Bitcoin's recent surge reveals a market shift with large holders reducing exposure while retail investors drive the rally, signaling a new phase in price action. Despite mixed signals from the larger crypto market, Bitcoin has held its ground above $104,000, indicating strong underlying support.

In summary, Bitcoin's price action is currently at a critical juncture, with the $103,000 support level being crucial for maintaining bullish momentum. Institutional demand remains strong, and a decisive move above $106,723 could trigger a bull rally to $120,000. However, a failure to hold above $103,000 could lead to a deeper correction, highlighting the importance of this support level in the near term.