Bitcoin May See Selloff If $100,000 Support Fails — Here’s Why

After a short-lived display of bullish momentum, where price returned as high as about $116,000 after the tariff-induced flash crash, Bitcoin’s price has maintained a sharp downward trend in the third week of ￰0￱ shockingly, on-chain data has surfaced that paints a pessimistic yet uncertain picture of the cryptocurrency’s ￰1￱ Reading: Bitcoin Price Falls To $103,000: Is This The End Of The Bull Run Or A Prequel To The Next Surge? $100,000 Emerges As Key Support Zone In a recent X post on Friday, CryptoQuant analyst Julio Moreno shared insights from his technical analysis of the Bitcoin price ￰2￱ highlighted that Bitcoin’s most recent break beneath what was a price consolidation range of $120,000-$108,000 has caused a shift of attention towards $100,000 as the next critical ￰3￱ crypto analyst defended his report with the Bitcoin Trader On-chain Realized Price Bands metric, which measures the lower boundary of the average on-chain acquisition cost for Bitcoin short-term holders.

Simply, this metric helps identify the price level that would act as support in cases where the price experiences corrective ￰4￱ the chart shared above, $100.9k is currently the lower boundary of the average trader realized price, one that Moreno expects could serve as a support ￰5￱ from technical analysis and on-chain activity, $100,000 is also a significant psychological price level, as it serves as the hallmark where Bitcoin enters a six-figure ￰6￱ the Bitcoin price were to fall to levels as low as $100,000, the strong psychological backing by market participants could translate to its price ￰7￱ a result, the flagship cryptocurrency could see temporary relief from the bearish pressure that it is currently ￰8￱ Reading: Solana Meme Economy: The Culture That Drives Billions In Volume – Here’s How What Next For Bitcoin?

As was previously mentioned, $100,000 stands as a significant level for the Bitcoin price, with psychology and technical analysis coming together to reinforce its ￰9￱ from Moreno’s post is the conjecture that if the $100,000 support were to hold, Bitcoin’s bullish sentiment among market participants could be renewed, thus setting the pace for the flagship cryptocurrency’s recovery towards its current all-time-high ￰10￱ the other hand, the failure of this important price level could carry grave implications, especially for short-term holders. A break in this psychological support could trigger a sharp sentiment shift amongst Bitcoin market participants, causing them to sell their holdings to minimize losses or escape with some profits.

Interestingly, the 365-day Moving Average (MA) sits around the $100,000 psychological ￰11￱ context, the 365-day MA is a technical indicator that shows Bitcoin’s average closing price over the past ￰12￱ extension of its primary function, the indicator is used to gauge Bitcoin’s direction in the long ￰13￱ Bitcoin should therefore slip beneath its 365-day MA of $100,000, it could be a sign that the digital asset is about to assume a long-term bearish trajectory, a sign which might precede major price ￰14￱ of this writing, Bitcoin is worth approximately $107,400, showing a 7-day loss of more than 5% of its ￰15￱ image from Flickr, chart from Tradingview