Bitcoin’s Bullish Mirage: Will BTC Plunge Below $100K? 🤔💸

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Key takeaway:

  • Ah, Bitcoin, that slippery little fish! As tensions in the Middle East bubble like a pot of overcooked spaghetti, investors are cutting their risk, threatening to send our beloved BTC tumbling below the $100,000 mark. 🍝💥

Once upon a Monday, Bitcoin (BTC) danced to a weekly high of $110,653, only to trip and fall 3.5% to a low of $106,600 by Thursday. The escalating drama between Iran and Israel has sparked a risk-off sentiment, and lo and behold, BTC is reacting like a cat to a cucumber. 🥒😼

From a technical standpoint, this correction is as routine as a morning coffee. BTC prices leaped about 10% between June 6 and Tuesday, and a 3.5% dip? Just a casual Tuesday in the crypto world. Our dear Bitcoin researcher, Axel Adler Jr, has a similar sentiment, noting that we are at a “soft reversal point.” Soft, like a marshmallow left in the sun. ☀️🍬

Utilizing the Bitcoin futures position dominance chart, our analyst friend explains that this price dip is likely due to long positions cashing in at resistance, supported by a flurry of aggressive short volume. Adler Jr quips,

“This is a classic ‘soft reversal point’ after an uptrend: as long as funding remains positive but open interest is declining, you should expect a short-term correction or consolidation below $108K.”

While a consolidation near $108,000 should not shatter bullish momentum, fractal analysis suggests a potential deeper drawdown. Oh, the drama! 🎭

Is Bitcoin falling into a bull trap? 🐂🚧

Bitcoin’s recent rally from $100,500 to $110,000 mirrors a setup from January 2025, when BTC rebounded from $91,700 to $102,700. The current observation reveals a tantalizing fractal pattern with possibly bearish implications. A fractal pattern, you ask? It’s like déjà vu for prices, repeating trends that could lead to similar price action under identical market conditions. As illustrated in the chart, the pattern can be summarized in three similar signals:

  • BTC price broke a descending trendline pattern after absorbing 3-4 weeks of trailing liquidity, forming a bullish break of structure on the daily chart. 🎉

  • BTC failed to reclaim the previous high, which, in both cases, was the all-time high level. Oops! 😬

  • The relative strength index slipped below 50 before recovering and hit a rejection at 60. Classic! 🙄

Should this fractal hold, Bitcoin could face a sharp rejection, potentially plummeting to $100,000, where significant support lies, as indicated by the chart’s liquidity zone. Validation of this fractal analysis requires the price to continue declining below Monday’s lows of approximately $105,000. 🕵️‍♂️

This raises the specter of a potential bull trap for BTC, where our crypto darling could signal the beginning of a multi-week drawdown. Invalidation would occur if Bitcoin reclaims and sustains above $108,000, negating the failed high and suggesting a bullish continuation. Fingers crossed! 🤞

Related: Bitcoin bulls halt $4K BTC price dip as US dollar hits new 3-year lows

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2025-06-12 21:43