The pioneer cryptocurrency, Bitcoin, fell by over 1.5% during Friday’s US market session, reaching a trading price of $103,053. The sudden sell-off liquidated over $472 million from the crypto market, signaling the continuation of bearish momentum. The escalating geopolitical tension in the Middle East remains the primary catalyst behind the June market correction; however, the BTC price faces the risk of a prolonged downturn amid a double-top bearish pattern. Is a $100k breakdown imminent?
Bitcoin Derivatives Cool as Open Interest Declines
The daily chat analysis of Bitcoin showed a notable reversal from $110,400 to $103,584, the current trading price, representing a 6.7% decrease. This correction momentum was primarily triggered by the escalating military action between Israel and Iran, now escalated as the United States is rumored to join this conflict.
Along with price pullback, Bitcoin’s derivative market shows a weakening of bullish momentum amid a declining trend in futures open interest.
According to Coinglass data, BTC’s OI value has decreased from $80.16 billion in late May to $69.19 billion currently, representing a 13% loss. This drop suggests that traders are unwinding their positions, likely due to profit-taking, liquidation, or uncertainty about the market direction.
A low speculative sentiment could lead to sluggish price movement or a prolonged downtrend.
Double-Top May Extend Correction Trend to $93,500
Since last month, the Bitcoin price has showcased two major reversals from the supply region at $112,000-$110,000 in the daily chart. The bearish downswing accentuated the presence of high supply pressure and the potential formation of a double top pattern.
The chart setup is structured as the letter ‘M’ and is commonly spotted at major market tops before a high-momentum downtrend. As the geopolitical tensions continue to pressure broader markets, the BTC price could drop another 2.68% and challenge the neckline support at $100,767.
This breakdown could push the price below the 100-day exponential movement average, reinforcing the selling pressure for an extended fall to $93,500.
Despite the anticipated downfall to $93,500, the Bitcoin price would remain above the 50% Fibonacci retracement level. Theoretically, a pullback to this level is considered healthy for a long-term uptrend, as buyers could replenish their exhausted push momentum before the next leap.
