Key points
- Over the past 24 hours, BTC has dropped nearly 3% and slipped below $110,000.
- The sell-off continues despite analysts’ generally optimistic medium- and long-term outlooks for BTC.
BTC Falls Below $110,000 as Altcoins Bleed
The cryptocurrency market has been volatile since the start of the week and looks set to finish on a bearish note. Bitcoin, the largest cryptocurrency by market capitalization, lost 2.8% of its value over the last 24 hours and is now trading below $110,000.
This bearish movement comes despite positive medium- and long-term forecasts for BTC. Asset manager Bitwise projects that Bitcoin could trade around $1.3 million by 2035, citing institutional demand, scarce supply and macroeconomic forces as key drivers.
In its report, Bitwise added that in a bull case Bitcoin could reach $2.97 million (39.4% CAGR), while a bear case could see BTC stagnate near $88,005 (2% CAGR).
Banking giant JPMorgan has also said Bitcoin appears undervalued relative to gold. The bank contends that the digital asset is becoming increasingly attractive for institutional portfolios, which could push its price higher over the medium to long term.
BTC May Re-Test $108,000 to Find Support
The 4-hour BTC/USD chart is showing bearish momentum as Bitcoin has displayed weak performance in recent days. Over the next few hours the coin could fall further as it seeks to establish stronger support.
The Relative Strength Index (RSI) on the 4H chart sits at 47, below the neutral 50 level, indicating bearish momentum. MACD lines are also in negative territory, suggesting sellers currently control the market.
If Bitcoin closes below its daily EMA at $110,883, it could drop further and re-test the recent low near $108,513. A prolonged bearish run would likely push BTC toward its next key support around $103,991, the 200-day EMA.
Conversely, if the market rebounds and closes above the daily EMA near $110,000, Bitcoin could continue its recovery toward the next daily resistance at approximately $116,000.