Key takeaways
- BTC is trading above $103,000, up about 1.5% in the past 24 hours.
- The coin could face further volatility if institutional demand weakens.
Bitcoin reclaims the $103,000 level
Bitcoin has traded around $103,000 in recent hours after recovering from the key $100,000 support level on Wednesday. The short-term rebound is tempered by weakening institutional demand: spot Bitcoin exchange-traded funds (ETFs) recorded an outflow of $137 million on Wednesday, extending their losing streak to six days.
On-chain data also indicates Bitcoin could face additional selling pressure if the $100,000 psychological level fails to hold. CryptoQuant noted in a Wednesday report that Bitcoin is hovering near critical support levels, the breakdown of which could trigger a sharper market correction.
The report added that if selling pressure intensifies in the near term, Bitcoin could lose the $100,000 support and slide toward the next major psychological level near $72,000.
Bitcoin may retest the $100,000 support
The BTC/USD 4‑hour chart remains bearish and intact after Bitcoin faced rejection earlier this week around a previously broken trendline and fell 8.18% on Tuesday. The decline led Bitcoin to retest the 50% retracement level at $100,353 before recovering to around $103,000 on Wednesday.
At the time of writing, Bitcoin is trading near the $103,000 area. An RSI reading of 38 shows continued selling pressure, while MACD lines remain in a downward zone.
If the $100,350 support level holds, Bitcoin could push toward the next resistance at $106,435 in the coming hours and days. A sustained move higher would give Bitcoin a chance to reclaim its weekly high above $109,000.
If that support fails, Bitcoin could continue lower toward the next daily support at $97,460. A further downside move would see BTC trading below $90,000 for the first time in six months.