Key takeaways
- BTC is trading above $103,000, up about 1.5% over the past 24 hours.
- The coin may face renewed volatility if institutional demand weakens further.
Bitcoin reclaims $103,000
Bitcoin traded around $103,000 in recent hours after bouncing from the key $100,000 support level on Wednesday. The short-term rebound has been tempered by weakening institutional demand, with spot Bitcoin exchange-traded funds (ETFs) seeing outflows of $137 million on Wednesday, extending their losing streak to six consecutive days.
On-chain indicators suggest Bitcoin could encounter additional selling pressure if the psychological $100,000 level does not hold. In its Wednesday report, CryptoQuant noted that the price is hovering near critical support zones, the breach of which could trigger a sharper market correction.
The report added that if selling intensifies, 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 4-hour BTC/USD chart remains bearish and constrained after Bitcoin faced rejection near a previously broken trendline earlier this week and fell 8.18% on Tuesday. During the decline, Bitcoin retested the 50% retracement level at $100,353 before recovering toward $103,000 on Wednesday.
At the time of writing, Bitcoin is trading around $103,000. An RSI near 38 indicates persistent selling pressure, and the MACD lines remain in bearish territory.
If the $100,350 support level holds, Bitcoin could climb toward the next resistance near $106,435 in the coming hours or days. A sustained bullish run could allow Bitcoin to reclaim the weekly high above $109,000.
However, if the support fails, Bitcoin may extend its decline toward the next daily support at $97,460. A further drop would put BTC below $90,000 for the first time in six months.