- Bitcoin struggles to maintain support around $108,000, showing structural weakness in the market.
- Volatility is returning, increasing downside risks but also opening potential for a relief rally.
Bitcoin (BTC) struggles to hold its ground near $108,000 as bearish sentiment increases in the crypto market. The market’s flagship asset faces structural weakness, raising concerns for traders and investors.
Bitcoin Faces Resistance at Key Levels
The Supply Quantiles model shows BTC is trading below the short-term holder cost basis of $113,100. More importantly, Bitcoin remains under the 0.85 quantile at $108,600, a level historically tied to potential broader corrections. If the trend continues, BTC could test the 0.75 quantile near $97,500. Weak buying activity highlights hesitation among both institutional and retail investors.
Volatility Returns to Bitcoin
The 1-Month Volatility Risk Premium has turned negative for the first time in four months. This shift ends a stable, low-volatility phase that previously favored passive strategies. As volatility returns, larger price swings could occur, increasing pressure on BTC and making market recovery more challenging.
Bitcoin’s Next Potential Moves
At press time, Bitcoin trades at $108,772, just above the $108,000 support. A break below this level could push BTC toward $105,585 or even $105,000, deepening short-term losses. On the upside, holding $108,000 support could trigger a relief rally to $110,000. A sustained move above this could pave the way to $112,500, offering a temporary bullish scenario.
Traders should closely watch these key levels, as Bitcoin’s next moves will determine near-term market trends.
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