Key Points
- BTC rose about 1.5% in the past 24 hours and is trading above $103.
- With institutional demand softening, the coin could face increased volatility ahead.
Bitcoin Recovers Above $103
Bitcoin’s price bounced from the key $100 support level on Wednesday and is trading around $103 after the rebound. The short-term recovery is fragile amid waning institutional demand: spot Bitcoin ETFs recorded $137 million in outflows on Wednesday, marking a sixth consecutive day of net redemptions.
On-chain indicators suggest that if the $100 psychological level does not hold, Bitcoin could face additional selling pressure. CryptoQuant noted in a Wednesday report that the price is hovering near a critical support area and that a breakdown could trigger a sharper market correction.
The report added that should selling intensify in the near term, Bitcoin could lose the $100 support and plunge toward the next major psychological level around $72.
Bitcoin May Retest the $100 Support
The BTC/USD 4-hour chart shows Bitcoin was rejected near a previously broken trendline earlier this week and remained bearish after an 8.18% drop on Tuesday. That decline led to a retest of the 50% retracement level at $100,353, before the price recovered to about $103 on Wednesday.
At the time of writing, Bitcoin is trading near $103. The RSI reading of 38 indicates persistent selling pressure, while the MACD lines remain in bearish territory.
If the $100,350 support level holds, Bitcoin could rise toward the next resistance near $106,435 over the coming hours or days. A sustained bullish momentum could push Bitcoin back above the weekly high around $109.
Conversely, if support fails, Bitcoin may extend its decline toward the next daily support at $97,460. A further drop would push BTC below $90 for the first time in six months.