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Bitcoin (BTC) remains under pressure after failing to sustain above key resistance levels, signaling that the latest recovery attempt may lack conviction. With bearish indicators still dominant and volatility increasing, analysts warn that the market could face another downward move if Bitcoin remains capped below the $105,000 zone.
Bitcoin Faces Resistance Near $105,000
Bitcoin’s price attempted a minor rebound after dipping below $100,000 earlier this week but struggled to extend gains. The flagship cryptocurrency briefly climbed above $103,000, breaking a short-term bearish trend line, yet momentum quickly faded as sellers returned near the $104,000 level.
At press time, BTC trades below $104,000 and the 100-hour Simple Moving Average (SMA) — a sign that bearish momentum continues to dominate short-term price action.
Technical data shows that Bitcoin is struggling to recover from its recent decline, which started after the asset failed to hold the $105,000 support level. Following the drop, BTC slid below $103,500 and even touched a low of $98,900, triggering renewed selling pressure across the crypto market.
The recent bounce above the 23.6% Fibonacci retracement level of the drop from the $111,000 swing high to the $98,900 low has not been enough to change the trend, as buyers remain hesitant to commit capital at current levels.
Technical Outlook: Resistance Levels to Watch
The first key resistance sits at $104,000, followed by a stronger barrier near $105,000, which coincides with the 50% Fibonacci retracement level of the previous decline. A decisive close above $105,000 could encourage short-term buyers, potentially pushing BTC toward $106,500 or even $107,500.
However, the overall market structure remains weak as long as Bitcoin trades below the $108,500–$108,800 range, which represents the next significant resistance cluster. A successful breakout above this zone would be required for bulls to regain control and restore momentum toward $110,000.
For now, the technical picture continues to suggest consolidation and a possible retest of lower levels unless the bulls manage to reclaim $105,000 on strong volume.
Downside Risk: Support Zones in Focus
If Bitcoin fails to break the $104,000 resistance, analysts expect another decline in the coming sessions. The first level of immediate support lies near $102,150, followed by stronger support around $100,500.
The $100,000 psychological level remains the most critical short-term support. A sustained break below this threshold could open the door for deeper losses toward $98,800, which acted as a short-term floor during the recent correction.
Should bearish pressure intensify, the next major support zone lies near $97,500. Below that, analysts warn of a potential move toward $95,000 if sentiment continues to deteriorate across global markets.
Broader Market Sentiment Weakens
The crypto market has been underperforming amid declining risk appetite and cautious macroeconomic sentiment. While Bitcoin’s price action has been relatively stable compared to major altcoins, investors remain wary of further corrections, especially as U.S. economic data and geopolitical uncertainties weigh on global risk assets.
Trading volume has also dropped significantly over the past week, highlighting waning momentum and growing indecision among both retail and institutional traders. Many investors are choosing to stay on the sidelines until clearer signals emerge regarding the next directional move.
Analysts note that the $100,000 support zone is now seen as the “make-or-break” level for Bitcoin. Holding above it could stabilize sentiment, while a confirmed breakdown might lead to broader weakness across the crypto sector.
Institutional Demand and ETF Flows Show Mixed Signals
Despite short-term bearish pressure, institutional flows into U.S. spot Bitcoin ETFs remain mildly positive, suggesting that long-term confidence has not disappeared. According to market data, leading funds such as iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC) have continued to record modest inflows, though at a slower pace than earlier in the year.
However, the muted response indicates that institutional investors are also cautious, waiting for more favorable entry points before scaling exposure. If ETF inflows pick up again in the coming weeks, it could provide a much-needed boost to Bitcoin’s recovery momentum.
Outlook: Bears Still Hold the Advantage
For now, Bitcoin’s short-term outlook remains bearish-to-neutral, with traders watching the $104,000–$105,000 range closely. A strong breakout above these resistance levels could pave the way for a move toward $107,500 or $108,800, while failure to do so may trigger a slide back toward $100,000 or lower.
Market analysts emphasize that sentiment remains fragile, and any further rejection near $105,000 could confirm the continuation of the correction phase that began in late October. Until then, Bitcoin’s recovery lacks conviction, and traders are likely to stay defensive amid signals of another potential pullback.
