Bitcoin finds support at $100,300, eyes the $106k mark: check forecast

The cryptocurrency market is showing signs of stabilisation on Wednesday following the market-wide correction earlier in the week.

Bitcoin temporarily dropped below $100k on Tuesday but is now trading above $101k.

The leading cryptocurrency is now consolidating around its key support level, suggesting that traders could troop into the market amid easing volatility. 

BTC dips below $100k on declining institutional demand, finds support level at $100,300

The cryptocurrency market has been extremely bearish since the start of the month, with Bitcoin’s price declining below the $100k level for the first time since May.

The decline comes amid declining institutional demand in the market.

According to SoSoValue, spot bitcoin ETFs saw a total of $577.74 million in outflow on Tuesday.

The biggest loser was Fidelity's FBTC, which saw $356.6 million exit the fund.

Ark & 21Shares' ARKB saw $128 million in outflows, while Grayscale's GBTC also recorded a $48.9 million outflow. 

The massive outflow recorded on Tuesday extends the ETFs’ outflow streak to five days, with $1.9 billion drained from the funds during that period. 

Rachael Lucas, crypto analyst at BTC Markets, pointed out that the ongoing outflows mark a decisive shift in institutional positioning, adding that it isn't just a pause but a recalibration.

Analysts at the on-chain analytics firm CryptoQuant predict that Bitcoin could drop to the $72k level if the bulls fail to hold the price above $100k.

Julio Moreno, CryptoQuant's head of research, told The Block that,

According to Moreno, the declining interest from institutions reflects a continued deterioration in demand following the Oct. 10 liquidation event. Moreno added that,

Bitcoin finds temporary support above $100k

The BTC/USD daily chart is bearish and efficient as Bitcoin has lost 10% of its value in the last seven days.

The technical indicators remain bearish as Bitcoin has underperformed in recent days. 

Bitcoin’s price faced rejection around the $106k mark earlier this week and has lost 8% of its value since then.

It retested the  50% retracement level at $100,353 and has now bounced back to trade above $101k.

The 50% retracement level at $100,353 currently serves as the temporary support and could allow Bitcoin’s price to rally higher in the near term.

If the support level holds, Bitcoin’s price could rally towards the next major resistance level at $106,435.

The RSI of 41 is below the neutral 50, indicating that the selling momentum remains in the market. The MACD lines are also within the negative territory, indicating a bearish bias. 

However, if Bitcoin’s price closes below the $100,353 support level, the bearish trend could continue, and BTC could decline towards the next daily support around $97k.