Bitcoin’s record-breaking rally has finally hit turbulence as the world’s largest cryptocurrency slid back toward the $100,000 mark. After weeks of strong gains, bearish pressure is now dominating the charts, raising concerns that the parabolic run may be starting to lose momentum.

BTC Breaks Below $105K Support

Bitcoin began the week under renewed selling pressure, failing to hold above the crucial $105,500 support level. The drop triggered a wave of profit-taking and short-term liquidations, pushing prices below $104,000 and even under the $100,000 psychological mark.

Data from Kraken shows that BTC touched an intraday low of $98,900 before stabilizing near the $100,000 area. The recent dip marks one of Bitcoin’s steepest intraday declines in recent weeks, wiping out nearly $200 billion from the broader crypto market’s total valuation.

Technical Structure Turns Bearish

The technical outlook now shows that Bitcoin is trading below both $104,000 and the 100-hour Simple Moving Average, signaling a short-term bearish trend. Analysts point to a downward-sloping trend line forming near $103,500, which is acting as a major resistance area for any recovery attempts.

According to chart analysis, the 23.6% Fibonacci retracement level of the move from the $111,000 swing high to the $98,900 low lies around $102,000 — a zone where Bitcoin is currently consolidating. Unless BTC breaks through $103,500, further declines could be on the horizon.

Resistance Levels to Watch

If buyers manage to push the price higher, the first major resistance sits near $103,500, followed by $105,000, which coincides with the 50% Fibonacci retracement level of the latest correction. A strong daily close above this zone could help BTC regain bullish momentum, potentially opening the door to $106,400 and $107,500.

However, analysts warn that without a decisive breakout, Bitcoin’s rally could continue to lose traction. The next upside barrier lies between $108,500–$108,800, an area that has repeatedly capped Bitcoin’s rebound attempts over the past week.

Key Support Zones and Risk Levels

On the downside, immediate support is located at $100,200, with the next critical level around $98,800. If the price breaks below these areas, the correction could accelerate toward $96,200 or even $95,500, which currently represents the main support zone.

A failure to defend the $95,500 region might indicate a deeper bearish reversal, potentially leading to a prolonged consolidation phase after months of strong gains.

Market Sentiment and Investor Reaction

The recent pullback has sparked mixed sentiment among investors. While long-term holders remain optimistic about Bitcoin’s structural strength, short-term traders are taking a more cautious stance. On-chain data suggests that several large wallets, or “whales,” have been moving BTC to exchanges — a possible signal of upcoming selling activity.

Despite the short-term weakness, Bitcoin’s fundamentals remain strong. Institutional demand continues to grow, with Bitcoin ETFs in the U.S. still recording significant inflows despite recent outflows. Analysts believe that this correction could offer a healthy reset before the next leg higher, especially if the macroeconomic environment remains favorable.

What Comes Next for Bitcoin?

Market strategists note that the $100,000 level is a crucial psychological and technical point. If BTC holds above it and reclaims $103,500, the broader uptrend could remain intact. However, a confirmed daily close below $98,800 may invite stronger bearish sentiment, with traders targeting $95,500 as the next test zone.

For now, traders are closely watching volatility indicators and liquidity data across major exchanges. As Bitcoin navigates these key levels, the coming days could determine whether this dip is a short-term correction or the start of a deeper retracement.