Bitcoin recorded a 2% decline, with its price dipping towards $104,970. Market analysts suggest this move is likely a short-lived technical correction rather than the start of a deeper downtrend.
On-chain data reveals a significant liquidity cluster forming near the $103,000 price level. This concentration provides a strong area of potential support, seen as a key threshold to mitigate significant further losses.
Heightened geopolitical tensions, particularly ongoing conflicts between Israel and Iran, are identified as a critical factor influencing Bitcoin’s near-term direction. These global events continue to inject volatility into the cryptocurrency market.
Despite the recent price decrease, underlying sentiment appears resilient. Bitcoin’s positive funding rate of 0.0025% signals persistent demand for long positions among traders.
Trading volumes have contracted alongside the price dip, reflecting heightened investor caution during a period marked by geopolitical risks and market uncertainty.