Bitcoin Crash: Will BTC Price Drop Below $100K?

On June 5, Bitcoin (BTC) experienced a significant crash to $100,000. This sudden downtrend comes on the back of Elon Musk and Donald Trump’s crash out regarding cutting the deficit. Regardless, technical analysis shows buyer strength that has pushed BTC price up by 3.40% today from the June 5 swing low of $100,305 formed at 4 pm ET. Will this bounce reduce the risks of a further crash? Will BTC price drop below $100K? Let’s find out.

Why Bitcoin Crashed to $100K?

As predicted in previous CoinGape articles, this Bitcoin crash was highly likely due to the muted 30-day implied volatility and a drop in CME futures and options open interests.

BlackRock offloading Bitcoin for Ethereum, leading to 11 consecutive days of ETH ETF inflows, could be another reason for the BTC price crash.

Markets are also considering the Circle IPO and its debut on Nasdaq as one of the reasons why liquidity may be moving out of Bitcoin and other top coins and into traditional markets.

Bitcoin Technical Analysis: Will BTC Price Drop Below $100K?

Despite the recent crash, BTC price today is up 3.40% from the lows and shows no signs of stopping. Investors looking to buy dips and speculate on short-term bounces can do so by examining the weekly Bitcoin Time Price Opportunity (TPO) chart. This technical analysis shows some key levels to pay close attention to:

1. Equal lows or poor lows at $100.3K: Formed after the recent crash, poor lows contain sell-side liquidity and will most likely be revisited for liquidity if buyers fail to flip key resistance levels. A sweep of poor lows often serves as a good scalp long entry levels.
2. Single print at $99.9K:  This term refers to unfilled gaps created due to an inefficient move to the upside on May 8. Single prints, also known as singles, are created due to impulsive moves, resulting in a large number of unfilled orders. A bullish single print serves as support by absorbing the selling pressure. The May 12 retest of singles is a good example.

A failure to push above the $105.3K to $105.8K will signal weakness and produce a lower high compared to $106.7K, the June 3rd swing high. This move would signal that the next drop could knock BTC price below $100K. If the buying pressure fails to absorb the incoming flurry of sell orders, it could lead to a breakdown of the $99.9K single print, catalyzing a 5% crash to $95.2K single print.

Popular trader RektProof highlighted the CME gap at $92K, further adding proof to the aforementioned bearish thesis.

Summary

Bitcoin’s recent crash to $100K was a bearish outlook that liquidated more than $1 billion worth of crypto market positions. Dip-buying activity has pushed BTC price up 3.40% today. However, if buyers fail to push the largest crypto roughly above $106K, it could catalyze a second leg that could crash Bitcoin below $100K, potentially to $95K and $92K.