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Bitcoin Price Drops Below $106.5K – Is $100K the Next Stop?

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Bitcoin Price- Bitcoin Shows Resilience Despite Market Fear and Liquidations

Bitcoin PriceBitcoin (BTC) recently dropped below its fair value gap at $106.5K, suggesting a bearish short-term bias. Analysts now see potential downside toward $102.5K, or possibly as low as $100K. A break below $100K remains less likely for now.

Global Tensions and Economic Uncertainty Shift Focus to Gold

Ongoing geopolitical tensions in the Middle East, rising fears of war, and economic uncertainty—including tariffs and slow U.S. disinflation—have prompted many investors to shift capital into gold as a traditional safe haven.

Bitcoin Price Drops Below $106.5K – Is $100K the Next Stop?

Despite this, Bitcoin (BTC) has managed to stay above the $100K mark, showing signs that more investors are viewing it as a store of value rather than a speculative asset.

Exchange Activity Reflects Calm Among Investors

Bitcoin Price Drops Below $106.5K – Is $100K the Next Stop?

In a post on CryptoQuant Insights, user CryptoMe highlighted that there was no significant increase in netflows, indicating that most long-term holders are not exiting the market.

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The drop from $110K to $105K triggered long liquidations, explaining the recent decline in Open Interest (OI). However, this wasn’t a mass sell-off, and OI remains relatively high—pointing to strong speculative interest.

Indicators Suggest Downside Risk in the Near Term

Technical indicators reinforce a bearish short-term view. The Chaikin Money Flow (CMF) shows growing selling pressure, while the Awesome Oscillator supports downward momentum. Analyst Axel Adler Jr noted on X that market sentiment stood at 46%, slightly below neutral.

To reestablish its June uptrend, sentiment must recover to 60–65%, which would require sustained buying interest.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.

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Bitcoin Price Drops Below $106.5K – Is $100K the Next Stop?
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