- Bitcoin’s $105K level is the key support that could decide whether the market stabilizes or declines further.
- A break below $103.5K may trigger renewed selling pressure and push Bitcoin toward the $100K region.
- Holding above the 200-day EMA near $104.9K could spark a short-term recovery toward $110K–$113K.
Bitcoin is facing one of its most critical tests of 2025 as prices fall toward $105,000. Market analysts are closely observing whether this level can hold and prevent a deeper slide that could weaken investor confidence. The move comes after a sharp correction that erased billions in leverage, leaving traders uncertain about the next direction.
Market Holds Breath as Bitcoin Tests the $105K Zone
Swissblock reported that Bitcoin has dropped to $105,000 and is trying to reclaim its lifeline support. The firm noted that its Risk Index remains stable, showing no sign of panic selling from strong holders yet. This range between $105,000 and $106,000 is now seen as a key area where sentiment could either stabilize or deteriorate further.
Bitcoin has declined around 14% from its October high of $126,198. Bitcoin is now retesting the 200-day exponential moving average near $104,901, which has acted as a long-term trend marker in past cycles. According to data, volume rose above 29,000 BTC during the pullback, indicating strong activity around the support zone. The relative strength index sits near 52, reflecting neutral momentum as traders wait for confirmation of direction.
Market analysts also noted that the 20-day and 50-day moving averages are positioned above current prices, creating short-term resistance. The Moving Average Convergence Divergence indicator remains bearish but shows early signs of convergence, suggesting potential easing of selling pressure. These signals suggest a balancing point rather than a clear trend reversal.
Policy Shifts and Leverage Unwind Shape Market Direction
Recent political and economic developments have added complexity to the market outlook. President Trump’s decision to cancel the 100% tariffs on China led to brief optimism across risk assets. However, mixed comments from officials later revived trade tension concerns, affecting investor sentiment across global markets.
The crypto market recently went through a $19 billion leverage purge that reset many traders’ positions. Analysts described it as a necessary clean-up that removed excessive speculation. Farzam Ehsani, CEO of VALR, stated that Bitcoin remained resilient despite the deleveraging, supported by more than $4.5 billion in ETF inflows during October. He added that institutional interest in Bitcoin and gold has grown as investors search for alternatives to traditional reserves.
Meanwhile, on-chain data revealed that institutional traders opened about $600 million in short positions ahead of Trump’s latest comments on China. These positions suggest that some market participants are preparing for further downside risk. Analysts said that a break below $103,500 could trigger a new wave of selling, pushing prices toward $100,000 or lower before new buyers emerge.
Market Sentiment Wavers as Traders Eye Critical Bitcoin Support
Across social and on-chain platforms, sentiment data points to rising caution. LunarCrush recorded a sharp increase in engagement as traders discuss Bitcoin’s next move. The Fear and Greed Index has fallen toward the low 20s, signaling widespread fear but not yet capitulation. Many traders view $100,000 as the final major support level of this bull cycle, with some warning that a close below it could lead to a broader selloff.
Bitcoin’s market capitalization now stands near $2.13 trillion, while total crypto market value is around $3.6 trillion. Trading volume rose by more than 25% this week, showing that activity remains high even as uncertainty grows. Ethereum trades near $3,800, while other major altcoins, including XRP and Solana, continue to show weakness.
Analysts agree that holding above the 200-day moving average at $104,901 will be critical for preserving market structure. If Bitcoin stays above this zone, a recovery toward $110,000 or $113,000 could follow. But a close below it may trigger deeper corrections toward $100,000 and even the $95,000 region.
