Bitcoin Might Drop Below $100,000, But a Rebound Is Likely
Bitcoin (BTC), currently priced at $104,072, has dropped 4.5% this week and might fall below $100,000 soon. However, data shows that if it does dip below that level, it may not stay there for long.
According to CryptoQuant, Bitcoin holders are taking some profits, but not nearly as much as they did during the market peaks in March and November 2024. This means the market isn’t overheated, and the uptrend could still continue.
Another important number to watch is $96,000 — this is the average price at which recently bought Bitcoin was purchased. It acts like a strong support level. If Bitcoin falls under $100,000, this $96,000 level may attract buyers and help push the price back up. In the past, Bitcoin hasn’t stayed below this support level for long during bull markets.
Trader Altcoin Sherpa believes that Bitcoin may soon bounce back. He pointed out that the $102,000 to $104,500 range has been a strong support zone before, and could help Bitcoin rise to over $107,000 in the coming days.
Another analyst, Titan of Crypto, also sees a key support level near $102,700. He thinks this area could serve as a good base for Bitcoin’s next move up.
$3.7 Billion in Futures Contracts Cleared Out
Bitcoin’s price recently dropped from $108,000 to $104,500, causing $3.7 billion in futures contracts to be wiped out. This happened because many traders had borrowed too much, and when prices dipped, their positions were liquidated.
While this sounds bad, it can actually be good for the market. Clearing out these risky trades helps reduce hype and makes the market more stable going forward.
