Bitcoin is facing a critical technical and psychological test after falling over 7% from its all-time high near $112,000. The retracement comes amid a wave of renewed global uncertainty, as the US and China reignite tariff battles, shaking investor confidence and injecting volatility into financial markets. Despite the macro headwinds, Bitcoin continues to attract attention as a hedge against systemic risk and political instability.
The current consolidation places Bitcoin just above $105,000, a level that many analysts are watching closely. According to top analyst Big Cheds, BTC is now approaching the 4-hour 200 moving average (MA), a historically significant dynamic support during previous bull cycles. A bounce from this level could confirm ongoing bullish momentum, while a failure to hold it might expose the market to further downside and trigger a broader risk-off move across crypto.
With altcoins also experiencing pressure, market participants are closely monitoring BTC’s next move to gauge broader sentiment. If bulls manage to defend key support and reclaim higher levels, the uptrend could resume. However, the coming days will be crucial, as Bitcoin navigates between technical structure, macroeconomic stress, and market-wide liquidity shifts.
Bitcoin Tests Support As Market Awaits Directional Break
Bitcoin is now testing a critical demand zone around the $103,000 level, following a sharp rejection from the $112,000 all-time high. After several failed breakout attempts in recent days, momentum has shifted, and BTC is pulling back amid a broader market cooldown. The move has increased short-term uncertainty, but the price still remains within a high-timeframe bullish structure.
Macroeconomic tensions continue to shape the crypto landscape, with rising US Treasury yields pointing to deeper systemic stress. Investors are navigating heightened volatility as global markets react to ongoing US-China trade disputes and mixed economic signals. Despite this, Bitcoin’s pullback may present a healthy consolidation phase rather than a trend reversal, provided bulls defend critical support levels.
Cheds highlights that Bitcoin is fast approaching the 4-hour 200 moving average, currently near $102,500. This is a historically reliable dynamic support level that has marked key reversal points in previous bull phases. A successful defense of this level could signal the end of the retracement and initiate the next leg higher. However, a breakdown below it could open the door for a deeper correction toward the $98K–$100K zone.
As BTC hovers near support, the coming sessions will be decisive. Holding above the 4H MA 200 could reignite bullish sentiment and restore upward momentum, while failure to do so may shift focus toward more defensive trading setups across the crypto market.
BTC Tests Daily Support Zone After 7% Retracement
Bitcoin is now trading near $103,300, testing the key support level marked by the previous range high at $103,600. After reaching a new all-time high at $112,000 earlier this week, BTC has pulled back over 7%, triggering a wave of uncertainty across the market. This support zone aligns with the 34-day EMA at $102,548, making it a pivotal area to watch for bulls aiming to regain momentum.
The chart shows BTC holding a strong uptrend structure despite the recent decline. Volume has increased slightly on this drop, suggesting some profit-taking but not yet panic selling. Price is still trading above all major daily moving averages, including the 50-, 100-, and 200-day SMAs, which remain upward-sloping—a signal that long-term trend structure is intact.
A bounce from current levels would confirm $103,600 as a new support floor and open the door for another attempt to reclaim the $109,300 resistance. However, if bears break below this zone, downside risk increases with the next major demand area around $98,000. With macroeconomic stress building and Bitcoin’s previous rally overextended, consolidation at this level may be necessary before the next leg up.
Featured image from Dall-E, chart from TradingView
