Bitcoin is currently experiencing a downward trend, trading below $104,300, reflecting a 1% decline. This bearish movement follows its inability to surpass the critical resistance level of $107,000.
Despite a promising start to the week, Bitcoin”s performance has faltered over the last 24 hours. After peaking above $105,000, it now risks dropping below the $104,000 mark, even as institutional demand appears to be growing. Recent data from SoSoValue indicates that US-listed spot Bitcoin ETFs saw a slight inflow of $1.15 million on Monday. This marks a notable shift after a string of withdrawals totaling $1.22 billion over the last six days.
If this inflow trend continues, it could provide the necessary momentum for Bitcoin to extend its price recovery. Additionally, analytics firm Glassnode reported that Bitcoin”s price action is stabilizing, suggesting a potential local bottom forming around the significant support level of $100,353. Their analysis suggests that the recovery towards the $106,000 resistance level indicates early signs of renewed buyer engagement.
Spot trading volume for Bitcoin increased from $11.5 billion the previous week to $14.1 billion on Monday, highlighting strong participation from investors and enhanced liquidity in the market.
The 4-hour chart for BTC/USD indicates a bearish outlook, with Bitcoin finding support around the 50% Fibonacci retracement level established on November 4. This level could act as a springboard for a potential rally. Should Bitcoin”s daily candle close above the 38.2% Fibonacci retracement level at $106,453, a rise towards the 50-day Exponential Moving Average (EMA) at $110,041 could be on the horizon.
Currently, the Relative Strength Index (RSI) stands at 58 on the 4-hour chart, indicating that bullish momentum is gaining traction. The Moving Average Convergence Divergence (MACD) lines have also converged into a bullish zone, signaling a buy opportunity for traders.
However, if Bitcoin”s correction persists and the daily candle closes below $106,453, it may extend its decline towards the critical support level at $100,353. Market participants should remain vigilant as the situation unfolds.
