Bitcoin

Bitcoin Price Dips 1.7%, Support at $104K Remains Critical

Bitcoin trades near $105K after experiencing dips amid global tensions and Federal uncertainty

Written By : Pradeep Sharma

Key Takeaways

  • Bitcoin trades near $105K, holding key support amid global tensions.

  • Strong inflows into Bitcoin ETFs reflect continued institutional confidence.

  • Mining hardware shifts and ETF demand support long-term digital asset growth.

Bitcoin continues to trade in a volatile but important range as geopolitical tensions, institutional buying, and upcoming macroeconomic decisions influence its price movement. The digital asset recently dropped by about 1.7%, settling around $105,000, with intraday moves between $103,600 and $106,900. The dip reflects a cautious market reacting to both global unrest and shifting investor sentiment.

This article covers Bitcoin’s latest price action, technical patterns, institutional interest, global news, and what may come next based on current indicators.

Latest Price Overview

As of June 18, 2025:

Current Price: Around $105,000

24-Hour Change: Down approximately 1.7%

Intraday High/Low: Between $106,900 and $103,600

Recent Trend: Mild correction following a multi-week climb

Bitcoin remains above major support zones but faces resistance near the $109,000 level. The current pullback aligns with global risk-off sentiment, with investors turning cautious amid ongoing tensions between Israel and Iran.

Geopolitical Influence on Bitcoin

The recent drop in Bitcoin’s price is partly linked to rising geopolitical tensions in the Middle East. Cross-border attacks and nuclear facility damage in Iran have sparked uncertainty in global markets. Traditionally, Bitcoin has been considered a potential hedge during such crises, but recent market behavior suggests investors are still weighing its role in global finance.

Geopolitical risks tend to increase market volatility. For now, Bitcoin has shown resilience despite the pressure, holding above key support levels.

Institutional Activity and ETF Inflows

Institutional interest in Bitcoin remains strong. Spot Bitcoin ETFs in the United States recently recorded net inflows of over $400 million, indicating that large investors are still entering the market even as prices fluctuate.

This steady inflow suggests long-term confidence in Bitcoin’s value and its role in diversified portfolios. Companies like MicroStrategy are also continuing to invest. The firm recently issued $1 billion in preferred stock to fund the purchase of over 10,000 additional bitcoins. Such aggressive moves by major firms reflect deep conviction in Bitcoin’s future value.

Mining Infrastructure Expansion

Large mining companies are also adjusting to global changes. Leading Chinese mining hardware producers are expanding operations in the United States. By setting up production units in North America, these firms aim to avoid tariffs and improve supply chain reliability.

This shift in infrastructure ensures continued Bitcoin network strength and reduces reliance on uncertain overseas logistics. A more stable mining sector can contribute to long-term price stability and investor confidence.

Also Read - Bitcoin & Stablecoins: What's The Next Big Milestone to Watch?

Technical Analysis: Support and Resistance Levels

Bitcoin is currently trading near its short-term support zone at $104,000 to $105,000. A break below this range could trigger further downside toward $100,000, which is considered a major psychological support level.

Key Levels to Watch:

Support: $104,000 – If this holds, upward recovery may begin

Resistance: $109,000 to $112,000 – A breakout here could lead to a rally

Next Bullish Target: $120,000 if resistance is cleared

Downside Risk: Falls below $100,000 if support breaks

Several analysts note that Bitcoin is forming a bullish pin-bar candlestick pattern on daily charts. This technical signal typically suggests a potential reversal or upward momentum. However, a clear breakout above $109,000 is still needed for confirmation.

Fundamental Factors Driving Bitcoin’s Price

Growing Institutional Support

Consistent inflows into Bitcoin ETFs and increasing interest from asset managers highlight Bitcoin’s acceptance as a store of value and speculative investment. Bitcoin is now part of the strategy for many retirement funds, hedge funds, and tech-forward portfolios.

Corporate Adoption

Companies like MicroStrategy, Tesla, and several fintech firms continue to hold or expand their Bitcoin reserves. Corporate balance sheet allocations provide strong price floors and signal mainstream acceptance.

Macroeconomic Environment

The global economic situation also plays a role. Inflation concerns are easing in many regions, but interest rates remain a major focus. If central banks, especially the U.S. Federal Reserve, indicate plans to hold or reduce rates, it could encourage investment in riskier assets like Bitcoin.

A dovish tone from the Fed often boosts crypto markets, while a hawkish stance might limit gains or trigger short-term corrections.

Regulatory Progress

The U.S. Senate recently passed a bill that outlines clear regulations for stablecoins. While the law focuses on stable digital currencies, it represents an important step toward clearer crypto regulation.

Political leaders have also proposed new strategies around Bitcoin, including the idea of a national Bitcoin reserve. Such developments increase public trust and attract more traditional investors.

Analyst Forecasts and Market Sentiment

Most analysts remain positive on Bitcoin’s future. Forecasts suggest a target between $120,000 and $150,000 in the second half of 2025, depending on how macroeconomic and political events unfold.

Some price models estimate a potential average price of $138,000 for June, assuming no major negative shocks. A common opinion among analysts is that if Bitcoin holds above $104,000 and breaks above $109,000, the market could witness a sustained rally.

Risks and Concerns

Despite the optimistic outlook, some risks could limit Bitcoin’s rise:

Geopolitical Tensions: If global conflicts escalate further, market panic could push risk assets lower.

Central Bank Decisions: Aggressive interest rate hikes may reduce capital flowing into Bitcoin.

Regulatory Shifts: Sudden restrictions in major economies could spook investors.

Technical Breakdowns: A sharp fall below $104,000 may lead to panic selling and drop the price to $100,000 or lower.

Investors and market watchers are carefully tracking these factors in the short term.

Also Read - When Will Bitcoin Become a Global Payment Method?

What to Watch in the Coming Days

Several events could influence Bitcoin’s price movement shortly:

U.S. Federal Reserve announcements related to interest rates

Bitcoin ETF flow data, especially from major providers

News on Middle East tensions and global oil prices

Regulatory decisions on digital assets and stablecoins

Corporate news from Bitcoin-holding companies

Market sentiment may swing quickly depending on how these developments play out.

Final Outlook

Bitcoin remains one of the most-watched assets in the financial world. Its price is currently in a healthy consolidation phase after strong gains earlier in the year. The support zone around $104,000 to $105,000 remains critical. As long as this holds, chances for recovery and renewed bullish momentum remain strong.

A break above $109,000 to $112,000 could open the doors to $120,000 and beyond. On the flip side, breaking below $100,000 would indicate a deeper correction. However, with growing institutional flows, corporate buying, and positive regulatory developments, the longer-term trend still looks favorable.

Bitcoin’s path in the coming weeks will likely be shaped by a mix of global events, central bank signals, and investor risk appetite. For now, the digital asset continues to show strength, even in uncertain times.

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