Bitcoin has encountered a critical breakdown, falling below the $100,000 support level, a significant milestone that has been crucial to its recent price rally. This unexpected move raises concerns about the sustainability of the growth momentum, as the market is currently at a crossroads.

It is critical to pay close attention to whether this break is a ephemeral decline or a sign of a broader down move in the coming sessions. Violation of the amount of PLN 100,000 support level puts Bitcoin at a precarious moment.

Historically, this level has acted as a psychological barrier and key support point. The coming days will be crucial in shaping the next phase of Bitcoin market results, with any remaining weaknesses likely to warrant a deeper correction.

Analysis of support breaking below $100,000

BTC’s current price action indicates that the asset is definitely in a bearish phase, showing significant negative resistance after successfully falling below the 4-hour Relative Strength Index (RSI) and the critical support level at $100,000.

This break below $100,000 marks a key shift in market sentiment, signaling the strength of the bears as they take control of the price action. Failure to stay above this critical support level triggered a wave of declines selling pressure, causing prices to fall and raising fears of further declines in the tiny term.

Combining these moves, the RSI, which has currently fallen into oversold territory, is strengthening bearish outlook, which suggests a lack of interest in purchases and that market sentiment remains decidedly negative. As Bitcoin struggles to find support at lower levels, investors are closely watching for any signs of stabilization.

If the price continues to fall under $100,000 further downward movement can be expected towards key support zones such as $90,000 and even $85,000. Moreover, a break of the $100,000 support has now set a fresh benchmark, and a failure to reclaim this level could mean the bears retain control, creating downward pressure for the foreseeable future.

Will Bitcoin recover to $100,000 or will it continue to fall?

Bitcoin’s recent price action has left investors wondering whether the cryptocurrency will be able to regain the critical support level of $100,000 or if it will continue to decline. Having broken below this key level, the asset is now facing increased bearish pressure from the market sentiment moving down. Failure to rebound above $100,000 could signal a deeper downturn, pushing Bitcoin towards lower support zones such as $93,257.

However, if BTC reverses the current trend and regains the $100,000 level, it could set the stage for a potential one recovery. A forceful rally above this threshold would likely revive bullish sentiment and provide fresh impetus for further growth towards current levels highest ever amounting to $109,577.

Featured image from Unsplash, chart from Tradingview.com