Bitcoin (BTC) Price Drops Below $100K, Threatening to Lose Key Support Levels

Bitcoin's price, currently hovering around $97,150 as of 12:38 pm UTC, is down more than 10% from its December 17 all-time high of $108,300

Bitcoin’s price has dropped more than 10% from an all-time high hit on Dec. 17, as the broader crypto market faced a correction.

According to BNC data, Bitcoin’s price was down over 10% from an all-time high of $108,300 on Dec. 17, currently hovering around $97,150 at 12:38 pm UTC. Bitcoin daily charts showed consecutive red candles for the first time since early November.

The downturn has also dragged Bitcoin’s social sentiment to its lowest levels of the year, with a ratio of four to five positive versus negative comments on Bitcoin-related topics across social platforms, according to BNC. This metric serves as a contrarian indicator, suggesting that the current wave of fear, uncertainty, and doubt (FUD) among retail investors may foreshadow a market reversal.

“Crypto’s further flush has sent Bitcoin’s crowd sentiment down to its most negative statistical point of the year,” market intelligence platform Santiment wrote in a Dec. 22 post on X. “Vocal traders are now showing severe FUD, and that’s good news for contrarians who know markets move the opposite direction of retail's expectations.”

Bitcoin is threatening to lose each of these supports. These supports need to hold if BTC is to avoid a transition into a correction. Weekly Close below would be bearish.

Source: X

Trader and analyst Rekt Capital highlighted that Bitcoin is slowly transitioning into week 8 of a bull market structure, with the past two bull markets experiencing corrective weeks during this time frame.

“In 2017, Week 7 as well as Weeks 8 and 9 were also corrective,” Rekt Capital wrote in one post. “In 2021, Week 6 and Week 8 were corrective. Bitcoin is currently in Week 7 and slowly transitioning into Week 8.”

Despite facing a few weeks of downturn, Bitcoin is still positioned for a potential breakout, according to the analysis. The convergence of bearish social sentiment, historical correction patterns, and emerging fractal signals suggests that the current downtrend may soon give way to a recovery. For investors willing to endure the market volatility, the long-term outlook for Bitcoin remains bullish, potentially leading to prices crossing $100,000 and beyond in the coming months.