Key points
- BTC is trading above $103,000, up about 1.5% in the past 24 hours.
- The coin may face renewed volatility amid weakening institutional demand.
Bitcoin reclaims $103,000
Over the past several hours, Bitcoin has been trading around $103,000 after bouncing off the $100,000 support level on Wednesday. The short-term recovery is clouded by weakening institutional demand, as spot Bitcoin exchange-traded funds (ETFs) recorded $137 million in outflows on Wednesday, extending their losing streak to six days.
On-chain data also suggests Bitcoin could face further selling pressure if the psychological $100,000 level fails to hold. In a Wednesday report, CryptoQuant noted that Bitcoin is currently trading near critical support levels and that a breakdown 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 fall toward the next key psychological level near $72,000.
Bitcoin may retest $100,000 support
The 4-hour BTC/USD chart remains bearish and intact after Bitcoin faced rejection around its previously broken trend line and slid 8.18% on Tuesday. That decline pushed Bitcoin to retest the 50% retracement level at $100,353 before bouncing back toward $103,000 on Wednesday.
At the time of writing, Bitcoin trades near $103,000. An RSI reading around 38 indicates continued selling pressure, and MACD lines remain in bearish territory.
If the $100,350 support level holds, Bitcoin could climb toward the next resistance at $106,435 in the coming hours and days. A sustained bullish run would allow Bitcoin to reclaim its weekly high above $109,000.
However, if that support fails, Bitcoin could extend its decline to the next daily support at $97,460. A deeper drop would see BTC trade below $90,000 for the first time in six months.