Bitcoin is facing the risk of a deeper price correction as it has slipped below key support levels, prompting concerns among analysts about a potential drop to the $100,000 mark.
On July 1, 2025, Bitcoin's price experienced a notable decline, falling to $105,905 after failing to maintain support above the $107,000 level. This 1.22% drop coincided with increased volatility surrounding legislative activity in the U.S. Senate, where lawmakers are debating President Trump's "One Big Beautiful Bill". The crypto market reacted negatively to the uncertainty surrounding the bill's final outcome, which is expected by July 4.
Technical indicators suggest growing bearish momentum in the market. The Moving Average Convergence Divergence (MACD) line is trending toward a downward crossover, signaling a possible continuation of the current downtrend. Additionally, the Relative Strength Index (RSI) is pointing downwards, indicating weakening bullish momentum. Bitcoin has been trading within a descending channel after a sharp uptrend between early April and late May.
Analysts have identified key support levels to watch. The immediate support at $106,500 was tested over the weekend. A break below this level could lead to further declines toward the 50-period Exponential Moving Average (EMA) at $106,146 and the 100-period EMA at $105,389. If these levels fail to hold, a 3.5% drop could test the 200-period EMA at $102,710. A crucial support level to monitor is near $104,500. A failure by buyers to defend this level could result in a fall to the psychological support level of $100,000. A close below $104,067, which aligns with the 78.6% Fibonacci retracement level, may see Bitcoin targeting the next zone at $97,766.
Bitcoin briefly fell below $99,000 on Sunday, reaching its lowest level in over six weeks, following news of U.S. strikes on Iranian nuclear sites. This event caused investors to reassess their risk appetite, contributing to the cryptocurrency's decline.
Despite the current bearish signals, the upsloping moving averages indicate a slight edge for the bulls. However, the RSI near the midpoint suggests a lack of strong bullish momentum. A rebound off the moving averages and a rise above the downtrend line could invalidate the bearish setup and potentially propel the pair towards the neckline of an inverse head-and-shoulders pattern. Key targets for a potential trend reversal include the recent high of around $108,759, the psychological resistance at $110,000, and the all-time high of $111,980.
Notably, interest in Bitcoin has decreased to its lowest level since October, despite the price remaining above $106,000. According to Google Trends, interest in the search term "bitcoin" peaked in November following the US elections but has since trended downwards. However, the Crypto Fear & Greed Index remains moderately bullish at 64, suggesting that traders and investors are still willing to take risks.
