Bitcoin Faces $108,000 Resistance as Analysts Warn of Potential Drop
Bitcoin (BTC) attempted to break the $108,000 resistance level but faced rejection as Q3 began, prompting caution among market analysts.
Bitcoin Holds Crucial Range
- Ended Q2 at approximately $107,140, its highest monthly close.
- Started July with a pullback to $105,623, marking a one-week low.
- Analyst Rekt Capital indicated a potential post-breakout retest for BTC.
- Bitcoin needs a weekly close above $104,400 to solidify recovery.
- Recent performance shows BTC broke two 2-week downtrends but was rejected from a crucial 6-week downtrend near $108,000.
- Failure to hold the $106,000-$104,000 support range could lead to a drop towards the $101,000-$102,000 macro support area.
BTC Risks Massive Drop In Q3
- Below $101,000, there is little support to prevent further declines.
- Historical data indicates Q3 tends to be a slow period for Bitcoin and Ethereum (ETH).
- Analysts expect a choppy start to the quarter while BTC consolidates within its current range.
- Ali Martinez warned of a sell signal from the Tom Demark Sequential indicator, which historically predicts significant BTC pullbacks.
- If historical trends continue, BTC could fall to around $40,000 this quarter.
As of now, Bitcoin is trading at $105,901, reflecting a 1.16% decline in the daily timeframe.