Bitcoin Holds $105K — But Traders Warn a Drop Below $100K May Be Coming
Rising Market Liquidity Signals High Stakes Around Key $100K Support Level
Bitcoin’s price is once again flirting with a critical psychological level — and this time, traders aren’t confident it will hold.
As of Tuesday, Bitcoin (BTC) is trading at around $105,954, roughly 6% below its all-time high of $111,900, and consolidating amid growing market uncertainty. The inability to break and hold above $106,000 has raised red flags among analysts, who warn of a “larger correction” on the horizon.
Market Eyes $100K as Key Support — But It’s Under Pressure
After breaking past $100,000 on May 8, Bitcoin has held above the milestone for more than three weeks — but the level has yet to be retested decisively, and traders say that may be next.
Michael van de Poppe, founder of MN Capital, noted Bitcoin’s rejection at the $106,000 level and suggested a near-term retracement was likely.
“Clear rejection on #Bitcoin implying that we’re going to see lower prices before we see upwards momentum,” van de Poppe wrote, sharing a chart pegging $100,000 as the key level on the four-hour timeframe.
Pseudonymous analyst CrypNuevo echoed the sentiment, suggesting that BTC may retest the $100K psychological level, also citing the 150-day Exponential Moving Average (150EMA) as a support target.
Could Bitcoin Drop as Low as $90K? Some Think So
Adding to the cautious tone, analyst AlphaBTC warned of a deeper pullback if $100K fails to hold, with projections pointing to a possible drop toward $90,000.
“$BTC is likely to go sideways for some time as this larger correction plays out in the first weeks of June, waiting for more hard data and the FOMC on June 18,” AlphaBTC stated.
According to Glassnode’s MVRV bands, Bitcoin could still maintain $100,000 as a firm support, but the next few days may be critical.
Liquidity Heats Up Below $100K — Traders Eye Liquidation Zones
Data from CoinGlass paints a clearer picture of the brewing storm. The heatmap shows a cluster of liquidity just below $100,000, suggesting high bid interest between the current spot price and $93,200.
Roughly $170 million in liquidity sits around the $93,200 mark, as traders place bets on a potential price sweep.
CrypNuevo emphasized that “$100K is a strong psychological level and liquidity tends to stack in these levels,” implying that if the price dips, a liquidity grab could drive the correction deeper before any potential rebound.
Meanwhile, on the upside, $112,500–$113,500 has emerged as a key liquidity zone. But AlphaBTC believes a downward sweep to run recent lows could happen first — possibly setting the stage for a strong bounce back toward those upper targets.
“There is significant liquidity in both directions, with a more concentrated build-up below the lows of the last few days,” he noted.
Outlook for June: Volatility and Uncertainty Ahead
With market participants awaiting the June 18 FOMC meeting and additional macroeconomic data, many expect sideways trading and heightened volatility. Analysts remain divided on whether $100K can serve as a launchpad for a summer rally, or if Bitcoin’s bull run is temporarily exhausted.
Either way, Bitcoin is once again at a pivotal moment, and the next move could define the market’s direction for weeks to come.
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