Key takeaways
- BTC is trading above $103k, up 1.5% in the last 24 hours.
- The coin could face further volatility amid weakening institutional demand.
Bitcoin reclaims $103k
The price of Bitcoin has been trading around $103k over the last few hours after rebounding from the $100k key support level on Wednesday. The short-term recovery is marred by the weakening institutional demand, as spot Bitcoin Exchange Traded Funds (ETFs) recorded $137 million in outflows on Wednesday, bringing their losing streak to six days.
Furthermore, on-chain data reveal that Bitcoin could face further selling pressure if the $100k psychological level fails to hold. In its report on Wednesday, CryptoQuant noted that Bitcoin’s price is currently hovering near critical support levels, a breakdown of which could trigger a sharper market correction.
The report added that if Bitcoin faces enough selling pressure in the near term, it could lose its $100k support level and dump towards the next major psychological level at $72k.
Bitcoin could retest the $100k support level
The BTC/USD 4-hour chart remains bearish and efficient after Bitcoin faced rejection around its previously broken trendline earlier this week and declined 8.18% on Tuesday. The dip saw Bitcoin retest the 50% retracement level at $100,353 before reclaiming the $103k level on Wednesday.
At press time, Bitcoin is trading around the $103k region. The RSI of 38 means that Bitcoin is still facing selling pressure, with the MACD lines also within the bearish region.
If the support level at $100,350 holds, Bitcoin’s price could rally towards the next resistance level at $106,435 over the coming hours and days. An extended bullish run would allow Bitcoin to reclaim its weekly high above $109k.
However, if the support level fails to hold, Bitcoin could extend its decline toward the next daily support at $97,460. Further downward movement would see BTC trading below $90k for the first time in six months.
