Bitcoin has fallen by 4% over the past day, plunging to $103,000 on Thursday after touching a weekly high of $110,653 on Monday. The sharp decline occurred after geopolitical tensions between Iran and Israel escalated, causing a risk-off mood in global markets.
Some analysts believe that the decline is normal despite the fall. Bitcoin has rallied about 10% since June 6, and a 3.5% correction is a normal market phenomenon.
According to researcher Axel Adler Jr., this move was a soft reversal point, driven by profit-taking at resistance levels and more short positions. He remarked that funding is still positive, yet open interest is declining, typically indicative of short-term correctional activity or sideways movement around $108K.
But fractal analysis is hinting at something more ominous in the making. This current price behavior is reflective of a structure in January 2025, where Bitcoin moved up and down in a comparable manner.
The chart now displays that BTC is unable to surpass its prior all-time high, and the RSI has reached a resistance level of 60 after dropping below 50, a phenomenon that may indicate a more significant drawdown.
Should this fractal play out, we could see Bitcoin revisit the $100K mark that is well supported in terms of liquidity. A decline below Monday’s low of $105K would confirm the bearish configuration.
Conversely, should BTC retake and sustain above $108K, then the fears of a bull trap will be nullified, and a resumption of the bullish momentum may be indicated. In the meantime, investors are hesitant, as Bitcoin is hanging in a critical area.
Also Read: Crypto Market Crash: 5 Reasons Why BTC, ETH, XRP, Altcoins Price Fell Today
