Bitcoin retraced to a low of $103,700 on Friday. It lost the $106k support for the first time in more than seven days.
The largest coin experienced one of its retracements since it reached a new all-time high. Nonetheless, it marks its fourth day of consistent declines. The downtrend began after Bitcoin (BTC) faced strong rejections around $ 110,000.
The bulls failed to overturn the bearish sentiment as further negative sentiment hit the market. Investors were still recovering from the threat of a possible resumption of tariffs. The United States announced a 50% levy on the EU last week but postponed when it would take effect.
POTUS expressed his displeasure over China taking the pause on the trade war for granted. He said the Asian giant failed to uphold its side of the deal and hinted at an appropriate response. The uncertainty surrounding geopolitical policies prompts traders to exercise caution as they anticipate further bearish developments.
Nonetheless, onchain pointed to the declines before it started. A previous analysis highlighted the growing disenchantment with Bitcoin’s previous price. The article cited the presence of small FOMO but stated that it would not be enough to cause an uptrend.
The trend is ongoing, and the largest coin is at risk of further descent. Data from CryptoQuant indicates that demand growth is intensifying. A post from the platform shows that, although the asset remains bullish, it may experience further retracement due to the bearish reading.
The derivatives market is heating up. Popular trader James Wynn said some corrupt entities control the crypto market. He reached this conclusion after multiple liquidations in the last three days.
Data from Coinglass shows that more traders will likely reach a similar conclusion, as the bulls lost over $700 million on their long positions. Nonetheless, the apex coin is seeing notable buying pressure at the time of writing.
Bitcoin Pulls Back
The asset rebounded and is currently trading at $104,676 at the time of writing. The 2-hour chart showed the pullback happened around 18:00 UTC. However, BTC remains at risk of further decline. The image below shows that after the slight recovery, a doji followed, indicating that selling action resumed. It is printing a red candle, suggesting that the bears are edging.
The average directional index sank lower following the most recent drop. It attests to the growing downward pull that the largest coin is experiencing. Its reading coincides with that of the relative strength index. The metric is at 50 as selling pressure intensifies.
Nonetheless, bollinger bands reveal an impending surge. Bitcoin slipped below the middle band on Wednesday and continues below it. It edges closer to the lower SMA, which may result in a possible trend reversal.
Based on readings from the outlined indicators, BTC is likely to decline further; however, a rebound is still far off. The pivot point standard suggests that cryptocurrency may retest the first resistance at $101,800. It may slip if the bulls fail to defend the mark, guaranteeing a dip below $100k.
It is worth noting that exchange reserves are depleting, suggesting the asset is still seeing notable buying action amid the retracement.
