Bitcoin Loses Critical Support: Could It Plunge to $105K in 2025?
Bitcoin’s recent price action has traders on edge as it breaks below a key support level, sparking fears of a deeper correction. Analysts warn that if the bearish momentum continues, BTC could test $105,000—a level not seen since early 2025. This article dives into the technicals, historical context, and expert insights to unpack what’s next for the crypto king. Buckle up; it’s gonna be a bumpy ride. --- ### Why Is Bitcoin’s $105K Support Level So Critical?
In crypto trading, support levels act like psychological safety nets. When bitcoin breached its long-held support at $120K last week, it wasn’t just a blip—it signaled a potential trend reversal. Historical data from CoinMarketCap shows that BTC hasn’t traded below $105K since January 2025, making this a make-or-break zone. As one BTCC analyst put it, “If $105K cracks, we’re looking at a domino effect.”
--- ### What’s Driving the Sell-Off?Blame it on a perfect storm: profit-taking after the 2024 halving rally, regulatory jitters (thanks, SEC!), and a stronger-than-expected U.S. dollar. TradingView charts reveal a 15% drop in BTC open interest, suggesting traders are fleeing Leveraged positions. Even MicroStrategy’s latest buy-the-dip tweet couldn’t stop the bleeding. Pro tip: Watch the Fed’s next rate decision—it could be the catalyst for another leg down.
Here’s where things get spicy. Fibonacci retracement levels point to $105K as the next major support, but if that fails, $90K isn’t off the table. Remember 2022’s “Crypto Winter”? Yeah, veterans do. That said, institutional demand from spot Bitcoin ETFs could cushion the fall. As always in crypto, expect the unexpected—just ask the guy who sold his BTC for pizza in 2010.
--- ### Is This a Buying Opportunity?Warren Buffett’s “be fearful when others are greedy” MANTRA feels relevant here. The BTC Fear & Greed Index just hit “Extreme Fear,” a historically reliable contrarian signal. But tread carefully—BTCC data shows margin liquidations are up 300% this month. My two sats? Dollar-cost averaging beats timing the bottom.
--- ### FAQ: Your Burning Questions AnsweredBitcoin Price Dynamics
When did Bitcoin last trade below $105K?
January 2025, following the Mt. Gox creditor repayments that flooded the market.
Which exchanges are seeing the most BTC sell pressure?
Binance and BTCC reported record volumes during the downturn, per CoinGecko.
Technical Analysis
What’s the RSI indicating now?
BTC’s daily RSI sits at 28—deeply oversold but not yet at December 2024’s capitulation levels.
