Bitcoin fell to a five-month low before staging a modest recovery, testing a crucial support line that traders say could decide the short-term fate of the bull market.
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According to Crypto Onchain, Bitcoin hit an intraday low of $98,900 before buyers pushed the price back above $101,000 and later to $103,400 at the time of writing.
The top coin’s year-to-date gain sits at close to 10% after peaking at an all-time high of $126,300 in October.
Bears Break $107,000 Fortress
Based on analysis from Crypto Onchain and on-chain data provider CryptoQuant, Bitcoin lost the $107,000 support after roughly 130 days of trading in a band between that level and $123,000.
The move sparked heavy liquidations in the futures market. About $640 million in long positions were wiped out over a 24-hour stretch.
That figure, market watchers say, is the second-largest daily long liquidation event since June 2021. The October 10 event remains the largest on record for comparison.
The $101,000 level has taken on extra meaning. Traders point out that bulls stepped in near $98,000 and pushed the market back toward the lower trendline of a long-term ascending channel that has held since October 2023.
Reports have disclosed that defending this channel bottom would be read as a bullish sign, while a close below it could signal deeper losses and a break in the market structure that has supported the rally.
CME Gap Could Pull Price Lower
A nearby gap on the CME futures chart sits between $92,000 and $93,000, roughly 10% from current prices, and some analysts are watching that area closely.
Historically, Bitcoin has often filled such gaps before resuming its next leg up, and the gap is now a possible target if bearish pressure continues.
At the same time, strong buying interest around the $101,000 zone could halt any slide and force prices back up.
Liquidations And Market Mood
The cascade of liquidations amplified selling pressure, particularly among highly leveraged traders. Futures positions were forcefully closed, and this intensified the intraday drop.
Yet buyers were quick to take advantage of the lower levels, and the rebound to $103,000 level showed a degree of demand at current prices. Volume and near-term momentum will be key in determining whether that demand is durable.
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Market participants say the most important signal will be a daily close relative to the ascending channel’s lower trendline around $101,000.
A sustained close above that mark would likely be read as a buying chance, while a decisive break and continued selling could open the path toward the CME gap near $92,000–$93,000.
Broader moves in US equities and large trader activity are also being monitored, since they helped trigger the recent pullback.
Featured image from Unsplash, chart from TradingView