Bitcoin has slipped below the $100,000 mark, prompting analysts to predict further declines. The cryptocurrency, which once reached a high of $111,970 in May 2025, is now facing significant headwinds.

Current Price and Recent Performance

Currently, Bitcoin is trading near $101,150, reflecting a 1.81% decrease in the last 24 hours. Over the past week, Bitcoin's price has fallen by 8.31%, and its monthly performance shows a 14.57% decrease. This downturn follows a disappointing October, where Bitcoin saw its worst performance in a decade, declining by 3.69% and breaking a seven-year "Uptober" streak.

Technical Analysis and Predictions

Technical analysis suggests that Bitcoin could decline by as much as 30% from its current levels, potentially erasing the gains of the last six months. Key support levels to watch are between $100,000 and $101,000. A break below this range could lead to further drops, with potential targets at $92,000-$94,000 and, in a more severe correction, $74,000-$77,000.

Analysts point to a breach of the 200-day moving average, currently around $109,840, as a concerning signal. The Relative Strength Index (RSI) also indicates a falling trend, which could foreshadow further price declines. Negative volume balance further weakens the currency in the short term.

Factors Influencing the Downturn

Several factors are contributing to the current bearish trend:

• Federal Reserve Policy: Recent statements from the Federal Reserve have reduced expectations of interest rate cuts, leading to increased risk aversion in crypto markets.
• Market Sentiment: Overall market sentiment has weakened, with significant losses seen in altcoins like Ethereum, Solana, and XRP. The Net Unrealized Profit/Loss (NUPL) metric is at its lowest since April, suggesting further weakness ahead.
• Technical Breakdowns: Bitcoin has broken through key support levels, signaling a potential shift in momentum. The breach of the rising trend channel indicates a possible slowdown in growth or a move towards a more horizontal trend.
• US Dollar Strength: Rising strength in the US dollar is adding pressure to Bitcoin's price.

Long-Term Perspective

Despite the current downturn, Bitcoin's long-term outlook remains a topic of debate. Some analysts believe that the cryptocurrency market is more mature than in previous cycles, suggesting that the price movement following the halving in April 2024 has not been as dramatic as in the past. Others point to Bitcoin's limited supply of 21 million coins as a factor that could support its value in the long run.

Supply and Demand

Bitcoin's price is primarily influenced by supply and demand. When demand exceeds supply, the price increases, and vice versa. Factors that can influence demand include media coverage, regulatory developments, and global economic conditions. The supply of Bitcoin is limited and new Bitcoins are entered into circulation through mining. The Bitcoin protocol entails halving, where the block reward amount that miners receive decreases, impacting supply.

Final Thoughts

Bitcoin's recent slip below $100,000 is a cause for concern among investors, with technical analysis suggesting further declines are possible. Factors such as Federal Reserve policy, market sentiment, and technical breakdowns are contributing to the downturn. While the short-term outlook appears bearish, the long-term prospects for Bitcoin remain a subject of ongoing debate and depend on various factors that influence supply and demand.