Bitcoin is under pressure, having dropped back to around $109,300 after reaching highs of approximately $117,000. The drop has sharpened attention on vital onchain support levels, which might define the next trend.
The initial strong support is around $109,000, where the most recent buyers have proved to defend the price. Maintaining this level or above is essential, as it keeps their entries profitable and contributes to building confidence. A drop below $109,000 could open the door to additional selling.
There is also another critical demand zone in the range of $104,000 to $108,000. This band is reflective of a high-volume domain where large amounts of Bitcoin are moved around. It is the so-called make-or-break region, as identified by analysts.
Buyers can also attempt a recovery if the price remains higher than in this zone. A decisive breakdown, however, renders the supporting levels of $107,300, $105,200, and $102,800 susceptible to action, with the eventual long-term bottom at $100,000 indicated.
Global economic indicators continue to impact market sentiment. Federal Reserve Chair Jerome Powell emphasized that there may be no impending rate reduction, which decreased the demand for risk-sensitive resources. His remarks put pressure on Bitcoin, which fell below the 110,000 mark.
Institutional activity has countered these macro challenges. BlackRock bought over 700 BTC worth of Bitcoin ($77 million) on Coinbase Prime. This comes when traders were expecting the expiry of Bitcoin options worth $17 billion. Although there were other precautions in the broader context, the move represented institutional confidence over the long term.
BlackRock has also developed other investment products. In addition to its $87 billion IBIT, it registered an application for a Bitcoin Premium Income ETF that would yield using covered call strategies. Analysts consider this product a means to attract investors seeking income and diversify their Bitcoin portfolios.
In technical terms, Bitcoin has been capped with a downward trendline since mid-September. A bearish crossover signal is a resistance zone of 50, and 100-period SMAs around $113,000 and $113,500.
Candlestick structures are indecisive. Small-bodied candles indicate increased failed attempts, and last week, a line of two red candles formed, resembling three black crows, a bearish continuation sign. Market momentum is not good, as there is no bullish divergence. The chart indicates that the RSI is approaching 33, which is just outside the oversold zone.
Also Read: Bitcoin Price Dips to $111,593 Before Recovering, Resistance Looms at $115,000