Bitcoin is currently trading around $105,000, approximately 6% below its all-time high of $111,900, as traders closely monitor key support levels. After failing to establish $106,000 as support, analysts are predicting a potential correction that could test the psychologically important $100,000 mark in the coming weeks.
Key Support Levels Under Pressure
Bitcoin has successfully maintained its position above $100,000 for more than three weeks since initially breaking this threshold on May 8. However, recent price action suggests this critical support level may soon face a serious test.
Michael van de Poppe, founder of MN Capital, spotted Bitcoin hovering at $104,300 and noted a clear rejection at the $106,000 level. His analysis indicates that BTC may need to drop lower before regaining upward momentum, with $100,000 being the crucial level to watch on Bitcoin’s four-hour timeframe.
Similarly, analyst CrypNuevo shared that Bitcoin failed to flip the resistance at $106,000 into support, suggesting a likely move toward the $100,000 psychological level plus the 150-day exponential moving average.
Deeper Correction Possible
Some analysts are predicting an even more significant pullback. Popular trader AlphaBTC projects a deeper correction that could see Bitcoin’s price drop as low as $90,000 if the $100,000 support fails to hold. According to AlphaBTC, Bitcoin is “likely to go sideways for some time as this larger correction plays out in the first weeks of June,” with traders waiting for more economic data and the Federal Open Market Committee (FOMC) meeting scheduled for June 18.
Despite these short-term concerns, data from Glassnode’s market value realized value (MVRV) bands suggests that Bitcoin could maintain $100,000 as support in the longer term.
Liquidity Clusters and Market Dynamics
Several traders are watching for a potential downside liquidity grab, with bid orders accumulating below the current spot price and clustering below the $100,000 mark.
“$100K is a strong psychological level and liquidity tends to stack in these levels,” noted CrypNuevo on X.
Recent data from CoinGlass reveals that prices are gradually eating away at bids around $105,000, with the majority of interest concentrated between the current price and $100,000. Significant bid orders are also building up below $100,000, with approximately $170 million worth of liquidity positioned around $93,200.
On the upside, the main liquidity area sits between $112,500 and $113,500.
“There is significant liquidity in both directions, with a more concentrated build up below the lows of the last few days,” AlphaBTC observed. “I wouldn’t be surprised if Bitcoin ran the lows and then rallied back up to take what’s left above.”
Market Outlook
As Bitcoin consolidates around the $105,000 level, traders are preparing for increased volatility in the coming weeks. The psychological $100,000 support remains crucial, and a break below this level could trigger a cascade of liquidations and potentially push prices toward the $90,000 range.
However, with significant liquidity on both sides of the market, sharp moves in either direction remain possible. Traders should pay close attention to upcoming economic data and the FOMC meeting on June 18, which could provide further direction for Bitcoin’s price action.
