Bitcoin Bulls has failed to break more than $ 106,000 earlier today, and since then $ 104,000 has been re -tested, which seems to be working as a new support zone amid a shrinkage in the broader market.
The broader encryption market has decreased by more than 3 % in the past 24 hours, leading to a decrease in the total number to $ 3.38 trillion.
However, the feelings remained optimistic, as they held fear and greed index in 74 years, making the market deep in the lands of greed.
The gains via Altcoins were barely noticeable, hovering between 0.5 % and 1.0 %.
Why bitcoin decreased today?
The Bitcoin drop appears to be associated with feelings of risk renewal across global markets.
After hovering near 106,000 dollars during the weekend, the leading cryptocurrency slipped to the lowest level of the day at 102,870 dollars on Monday, following the weakness of the US stock futures and warned the broader investor.
The sale was not isolated by encryption. Futures with NASDAQ 100, Russell 2000 and S&P 500 each fell more than 1 % during the early session on Monday, while Dow Jones Futures fell 0.70 %.
At the heart of the market shrinking on Monday, Moody’s decision was to review his view of the American credit rating from stable to negative, indicating the exacerbation of a financial path.
Moody’s is one of the world’s three major credit rating agencies, along with the global S&P classifications and Fitch classifications. It provides credit, research and risk analysis classifications for governments, companies and financial tools.
Moody’s is the last three major credit rating agencies that maintain a higher classification of the United States, and a negative view indicates a higher risk of reducing future level.
The agency indicated high levels of debt and political networks as the main threats to the country’s long -term credit.
Historically, the credit rating classified the markets.
Follow the similar recession to reduce Fitch’s debts in the United States on August 1, 2023, while the early reduction by the S&G Global in 2011 led to heavy sale of risk origins.
Investors were quick to respond to the warning, while deepening fears of the enlarged American debts.
According to the American debt hour, the national debt now exceeds 36.8 trillion dollars, up from 21 trillion dollars just five years ago.
These concerns were neglected through the House of Representatives Convention recently regarding the so -called “large and beautiful invoice”, a comprehensive legislative package that includes tax cuts estimated at $ 5 trillion over the next decade, partly corresponding to $ 1.5 to $ 2 trillion in expected spending discounts.
In addition to the market, the Federal Reserve referred to a cautious approach to monetary policy.
Despite calls, Federal Reserve officials indicated that interest rates will remain unchanged in the short term, noting the constant economic uncertainty and the need for more specific signals about the course of the economy before considering any price cuts.
What is the following for Bitcoin?
On the technical front, Bitcoin was already flashing signs of weakness before a decrease on Monday.
While Bitcoin rose to the highest new local level above 107,000 dollars on May 19, analysts noticed a declining difference as the RSI index printed the highest level.
There daily $ BTC Div Brewing bears here if it closes the red color by tomorrow. It is unfortunate that it appeared before Fresh Ath, but it is the first since last year. Be careful with longs imo
This classic downward difference between price and momentum often alludes to the reflection of the direction, and this time, it was delivered.
BTC soon fell by 4.5 % inside the day, and Trader Bluntz was not surprised, warning of followers. [placing] Longs. “
In addition to caution, Swissblock analysts indicated that Bitcoin was simply “grabbed liquidity” over the resistance area of $ 104,000 to 106,000 dollars without already a suitable outbreak.
The move was followed by sharp rejection, and the price withdrawn directly to a pre -disputed range.
Bitcoin now finds the same roaming immediate support directly between $ 101500 and $ 102,500, a region currently being tested.
If this support zone allows the field, then Swissblock sees a range from 97,000 to 98,500 dollars as the next potential landing point, supported by historical Onchain size and previous trading activity.
According to some critics on the market, the probability of re -testing increased after BTC failed to close the neckline of $ 107,000, the same level that led to Habboudia’s repercussions in December 2024 and January 2025.
Currently, cautious traders have pointed out the support of $ 101,500, which, if broken, can lead to a deeper correction.
When writing, Bitcoin Bulls was trying to create a level of $ 104,000 as a support zone, which, according to the famous commentator Rekt Capital, is exactly what should happen to re -test post -crack.
On May 19, Rekt Capital noted that retaining about $ 104,400 as it supported is a crucial matter for Bitcoin to confirm the penetration structure that was built months ago.
The analyst has highlighted a repeated pattern on the weekly graph, as BTC historically re -testing the previous resistance areas as support before continuing at the top.
The $ 104,000 area is now the latest key to this structure.
If this level continues, the way may pave the way for more upward trend in the medium term. But if it collapses, the momentum may turn decisively in favor of the bears.
However, some merchants remained optimistic despite the current contraction.
One scenario was presented in the bullish direction by Merlijn Trader, which referred to the BTC/USD chart for 8 hours and select a bullish pattern of bullish in composition. According to him, as long as the structure retains, Bitcoin can prepare for penetration about $ 116,000.
They shook the tree. Now the missile appeared on the right track. As long as the structure holds,
$ BTC The goal: 116 thousand dollars, either shaken … or you carry the golden ticket.
Meanwhile, Motalis’s colleague Motalis rejected the idea of full recovery to $ 97,000, indicating that Bitcoin may not provide such a clean test after all.
According to Moralis, BTC still respects this trend line despite the recent decline, and the market structure remains intact at the present time.
While many merchants are looking for a region of $ 97,000 as a potential support goal, ethics implicitly that the opportunity may have already passed, with Bitcoin’s recovery now over $ 103,000 at the time of his position.
At the time of the press, Bitcoin has been trading at $ 104,829, a 0.6 % decrease over the past 24 hours, as Bulls continued to defend the main support levels amid uncertainty in the market.
Altcoins struggle
She did not reap the most risky feeling of risk, reflecting the decrease of Bitcoin.
Over the past 24 hours, the maximum Altcoin market has decreased by 3.5 % to about $ 1.35 trillion, with the Altcoin season index read from 31 to 14 May in the last selection Monday, May 19.
ETHEREUM (ETH), which stands as the largest share in the market, has decreased by 4 %, less than $ 2,500, while other large Altcoins that lead the market like XRP (XRP), Solana (SOL), Dogoin (DOGE) and Cardano (ADA) have lost losses between 3-7 %.
Some of the high -drawing coins that were barely managed to remain positive over the past day when the Gold Writing (Xaui), Pax Gold (PAXG), Kucoin (KCS), and only gained gains less than 1 % each. see below:
source: Coinmarketcap
Bitcoin 104 thousand dollars, as reducing Moody leads to the appearance of risk feelings first on Invezz
