The Bitcoin price continues to decelerate as the crypto market shows signs of weakness due to macroeconomic factors. The top crypto by market capitalization has been testing critical support levels and is at risk of falling deeper into its monthly lows.
At the time of writing, the Bitcoin price trades around $104,000 recording a 2.5% drop over the past 24 hours. Other cryptocurrencies show greater weaknesses on similar timeframes with Ethereum and XRP displaying a 8% and 4% drop, respectively.
Bitcoin Price Alert, Key Levels To Watch
According to top crypto analyst Daan Crypto, the Bitcoin price has been trading within a narrow window after losing the range high located at $108,385. While the cryptocurrency has been able to withstand the sell-off, the analyst drew important levels to watch.
As seen on the chart below, and according to the analyst, the Bitcoin price is likely to stay on its bearish course and potentially touch the mid area of its current range. This price action would put BTC at around $99,600 in the coming days.
If buyers can’t hold the sell pressure around this level, then BTC is more than likely to keep bleeding into its range low of $90,000. This bearish price action, the analyst clarified, would become the norm for the rest of June.
Daan Crypto stated the following regarding the Bitcoin price action:
Quick move after that which was obviously “helped” by the headlines although the news was looming already with the past 48 hours of headlines which is also why price started selling of prior.
I’ve said it a couple of times before but I’ll say it again. Bulls had no business going back down below $108K and I’m treating this as another deviation and move back into the larger range. This is reason enough for me to be cautious and not add on exposure that was derisked (…).
In this context, the analyst advised his followers to wait for clear confirmation that the bull trend is returning if Bitcoin can retake its range high around the previously mentioned level. Otherwise, the best course of action is to remain cautious.
Optimism Fades as Bitcoin Aims for Lower
On a separate note, trading desk QCP Group noted that the biggest risk for Bitcoin and the crypto market comes from the rising tensions between the US and China, and the growing tensions in the Middle East.
However, the trading desk pointed at several items to show that there are still good news hinting at a potential recovery in the digital asset market. These included the spike in Ethereum ETFs inflows, the potential launch of a Solana ETF, and GameStop’s plan to offer $1.7 billion in convertible notes to allocate money into Bitcoin as the company looks for “balance sheet diversification.”
Cover image ChatGPT, BTC/USD chart from Tradingview
