After retracing below the psychological $100,000 threshold, Bitcoin has investors wondering if this is a short-term decline or a more substantial change on the market. As of right now, Bitcoin is trading at about $95,933, down 1.04% from the previous day. After a robust rally that nearly took Bitcoin to its all-time high, there has been a correction.The upward trendline that was established during its late 2024 rally has clearly broken out on the chart. Buyers appear to be losing steam, which indicates a loss of momentum. As overly leveraged positions are unwound, a noticeable increase in selling pressure has also resulted in significant liquidations in the futures market. Since the market is currently fragile, these liquidations have probably accelerated the decline.Many analysts view this dip as a healthy correction, and Bitcoin is still in a long-term bullish structure despite the retracement. The levels of $92,500 and $87,500 are important support levels to keep an eye on because they might serve as reentry points for buyers. On the other hand, resistance at $100,000 will probably be a major obstacle that will need to be overcome by strong market sentiment.There are challenges facing the larger cryptocurrency market as well, and macroeconomic uncertainty is one of them. But given Bitcoin's solid foundation — which includes growing institutional interest and adoption — if the market as a whole stabilizes in the upcoming months, the $100,000 mark might be tested again.The main concern for the time being will be whether Bitcoin can hold onto its present support levels and steer clear of more significant corrections. Because of the continued liquidations and increased volatility, traders should exercise caution. When navigating such market conditions, patience and careful risk management are crucial, as always.
