Bitcoin faces renewed selling pressure as its price retreats towards crucial technical support zones.
After failing to sustain momentum above the $109,000 resistance level, Bitcoin descended to trade around $105,250. Analysts warn this moves the cryptocurrency closer to testing foundational support thresholds.
The Relative Strength Index (RSI) readings indicate a precarious market balance, suggesting potential for either an upside breakout or a significant breakdown depending on key price holds. Market participants are closely monitoring the $104,500 price point as a major defense line for buyers.
Technical analysis of the BTC/USDT daily chart underscores the importance of moving averages and the formidable resistance near $112,000. Failure to defend the $104,500 support level could trigger further declines.
This scenario opens the possibility of Bitcoin testing the psychologically significant $100,000 mark, should sellers gain dominance. Short-term trading dynamics show Bitcoin currently trading below its moving averages on the 4-hour timeframe, reinforcing the critical nature of the $104,500 level.