Key takeaways
- BTC is down nearly 3% in the last 24 hours and has dropped below $110k.
- The sell-off continues despite analysts being optimistic about BTC’s performance in the medium term.
BTC dips below $110k as altcoins bleed
The cryptocurrency market has been volatile since the start of the week and now seems to end it on a bearish note. Bitcoin, the leading cryptocurrency by market cap, has lost 2.8% of its value in the last 24 hours and is now trading below $110k.
The bearish performance comes despite positive forecasts around BTC’s medium and long-term views. Asset management firm Bitwise projects Bitcoin price to trade near $1.3 million by 2035, citing institutional demand, scarce supply, and macroeconomic pressures.
In its report, Bitwise added that in a bullish case, Bitcoin could reach $2.97 million (39.4% CAGR), while a bearish scenario could see BTC stuck around $88,005 (2% CAGR).
Banking giant JPMorgan also stated that Bitcoin is undervalued relative to gold. The bank argued that the digital asset is increasingly attractive for institutional portfolios, and this could push its price higher in the medium to long term.
BTC could retest $108k to find support
The BTC/USD 4-hour chart is bearish and efficient as Bitcoin has been underperforming over the past few days. The coin could dip further over the next few hours as it seeks to find its strong support.
The Relative Strength Index (RSI) on the 4H chart reads 47, which is below its neutral level of 50, indicating bearish momentum. The MACD lines are also within the negative territory, suggesting that sellers are currently in control.
If Bitcoin closes below its daily EMA level of $110,883, then it could dip further and retest its recent low of $108,513. An extended bearish run will see BTC dip toward its next key support at $103,991, the 200-day EMA.
However, if the market bounces back and closes above the $110k EMA, it could extend its recovery toward its next daily resistance at $116,000.
