Amid the slump in the Nasdaq, Bitcoin has dropped below $100,000. As buyers face critical resistance, rising supply signals a potential decline to $96K.
The U.S. market is experiencing a downturn in tech stocks, partly due to the recent launch of Chinese AI, DeepSeek, which has outpaced ChatGPT.
Meanwhile, the cryptocurrency market is also facing bearish momentum. Over the past 24 hours, Bitcoin has dropped 4.15%, now hovering near the critical $100,000 mark.
With its market cap falling below $2 trillion, Bitcoin starts the week on a bearish note. Could this downward trend lead to an extended correction?
Bitcoin (BTC) Price Chart
In the 4-hour chart, the BTC price trend reveals a bullish failure to cross above the $107,123 critical resistance. This led to a minor consolidation at the 20 EMA line before extending the correction phase.
With the downfall in the U.S. market, BTC’s price creates three consecutive high-intensity bearish candles to test the 200 EMA line. Currently, Bitcoin trades at $100,080 as it seeps under the 61.80% Fibonacci level at $100,557. Furthermore, the cryptocurrency has registered a 24-hour low at $99,981.
With the sudden surge in selling pressure, the 4-hour RSI line has dropped to the oversold boundary level. Furthermore, as the declining trend threatens a downfall in the 200 EMA line, the 20 and 50 EMA lines are on the verge of a negative crossover.
Thus, the technical indicators have quickly turned bearish, increasing the chances of a downtrend continuation.
BTC Price Targets
As the liquidation in the crypto market nears $600 million, the selling sentiment is significantly dominant. Hence, the crucial support levels for Bitcoin at the 50% Fibonacci level at $98,611 could witness a massive hit.
In case the support level fractures, Bitcoin’s price could hit the $96,703 or 38.20% Fibonacci level.
On the flip side, if the 200 EMA line at $99,867 manages to absorb the incoming supply, BTC will likely undergo a minor consolidation above the 61.80% Fibonacci level at $100,557.
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