On Tuesday, Bitcoin faced a retreat during trading, demonstrating a clear bearish trend as it descended from $103,177 to a low of $102,203. The decline came after attempts to surpass session highs above $105,300, with the cryptocurrency navigating a significant range of $3,289. A sharp breakdown was recorded at 2:00 PM, characterized by notable trading volume of 27,579 BTC, marking a 138% increase above the 24-hour moving average.
The trading day commenced with Bitcoin challenging key resistance levels around $105,050. However, by 4:00 PM UTC, the momentum shifted decisively downward, establishing consecutive lower highs. In the hours that followed, Bitcoin’s price found some stability within a tighter range of $101,500 to $102,200 as selling pressure began to ease, coinciding with a decrease in volume.
Detailed hourly data revealed sporadic trading activity between $101,940 and $102,475, indicating a modest recovery from the session’s lows. Despite this, there were several failed attempts to break above the $102,400 resistance, and buyers notably defended the $102,000 psychological barrier during three separate tests.
The cryptocurrency’s decline happened concurrently with significant institutional investment flows, as spot Bitcoin ETFs recorded net inflows of $524 million on Tuesday, the highest since October 7. Among these, BlackRock’s iShares Bitcoin Trust and Fidelity’s FBTC saw substantial contributions of $224.2 million and $165.8 million, respectively, highlighting ongoing institutional interest even amidst bearish market conditions.
On-chain analysis further illuminated the selling pressures facing Bitcoin, despite a facade of stability. Approximately 7,500 BTC were transferred to Binance daily over the past month, a volume not seen since March, suggesting ongoing profit-taking activities among short-term holders. Many of these holders, with entry points near $112,000, have been selling while remaining underwater for about a month.
Despite these concerns, the mining fundamentals appeared resilient. Metrics showed a positive momentum in hash rates, reflecting ongoing network strength and miner confidence, which usually contradicts the capitulation patterns typical with major price corrections.
Technical analyses indicate a precarious trading environment for Bitcoin. Key support is noted at the psychological level of $102,000, with initial backup around $101,450. Conversely, resistance has been confirmed near $105,050, with a secondary barrier at $107,000. The price action has established a bearish structure characterized by consecutive lower highs, leading to stabilization within the $101,500 to $102,200 range.
Looking ahead, should Bitcoin break below the $102,000 threshold, it may target the $100,600 to $101,200 range. Conversely, reclaiming the $105,050 level could provide a pathway to test the $107,400 resistance.
