Bitcoin’s rally seems to be taking a breather—or maybe something a bit more serious. After hitting a new record high just a few weeks back, the price has dipped below some key levels traders were watching closely. And honestly, it looks like there might be more downside ahead, at least for now.
Daily Chart Points to Weaker Support
Looking at the daily chart, things have been trending down for a bit. The price broke through what was a pretty solid support level around $110K, and it also slipped under the 100-day moving average. That’s not nothing. When those levels don’t hold, it often means more selling could be coming.
From here, some analysts are eyeing the next possible floors—maybe around $104K, or even lower near the $100K mark where the 200-day moving average sits. The RSI indicator is also hanging below 50, which usually suggests momentum isn’t on the buyers’ side right now.
Short-Term Momentum Looks Bearish
Zooming into the 4-hour chart, the downtrend looks even clearer. Lower highs, lower lows—it’s a classic pattern when sentiment shifts. The $117K and $110K supports have already been tested and broken. Now, a lot of people are watching that $104K area.
It lines up with what’s called a “fair value gap,” and also matches a common Fibonacci retracement level. How the market behaves around there could tell us a lot about where we’re headed next. A bounce? Or more fatigue?
Fewer Bitcoins on Exchanges
Here’s where it gets interesting. Even though the price has been pulling back, exchange reserves—the amount of Bitcoin held on trading platforms—have been dropping all year. And I mean consistently. That suggests people are moving their coins off exchanges, maybe into cold wallets or just holding long-term.
That could actually be a good thing for the market longer-term. Less supply up for grabs means if demand stays strong—or picks up—it could push prices higher again. But in the short run? Prices can still swing on sentiment, news, or just plain old profit-taking.
So yeah, things feel a little shaky right now. But the bigger picture might still be intact. We’ll see.
