Key takeaways:
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Bitcoin price deviated 12% from its all-time highs on June 23, dropping below $100,000 for the first time since May 8.
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The 24-hour liquidation heatmap suggests a $97,000 short-term target, with a rounded top pattern predicting Bitcoin’s price can go as low as $74,000.
Bitcoin (BTC) price has declined by more than 4.6% over the last seven days after rallying to $109,000 at the beginning of last week.
Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin dropped by as much as 5% on June 22 to a low of $98,240 from a high of $103,400.
Bitcoin’s price drop coincides with a marketwide drawdown fueled by geopolitical uncertainties as Iran’s nuclear sites were targeted by US airstrikes. The ensuing sell-off has left market participants wondering how much deeper the price can go.
Bitcoin takes liquidity tumbling below $100,000
BTC price fell as low as $98,240 on June 22 after US President Donald Trump confirmed strikes on nuclear facilities in Iran. This extended the drawdown from the May 22 all-time high of $112,000 to 12%, which was accompanied by significant liquidations across the derivatives market.
The 24-hour crypto market liquidations hit $672 million, per data from monitoring resource CoinGlass. Bitcoin ate through long liquidations with ease, wiping out more than $238 million in long positions between June 22 and June 23.
Buyers stepped in at the $99,300-$98,500 range to bring the price back into six figures. However, as shown in the chart below, more bid orders appeared between $98,000 and $97,000.
This suggests that Bitcoin’s price might drop further to sweep the liquidity within this range. On longer time frames, the liquidity clusters are just above $80,000, which, according to popular Bitcoin analyst AlphaBTC, remains a key area of interest, depending on how the geopolitical events play out.
In a June 23 post on X, AlphaBTC said:
“This week will be a big influence on the rest of the summer for markets and risk assets.”
Related: Traders watch XRP, ETH, SOL and HYPE now that Bitcoin trades below $100K
BTC rounded-top pattern targets $74K
From a technical perspective, Bitcoin’s price has potentially formed a rounded top or an inverted U-shaped pattern on the daily chart (see below).
Bulls are now focused on defending the psychological level at $100,000. Below that, a key area of interest lies between $95,000 (where the 100-day and 200-day simple moving averages appear to converge) and the yearly open around $93,400.
A daily candlestick close below the neckline of the governing chart pattern at $93,000 would confirm a bearish breakdown from the rounded top formation, ushering BTC into a prolonged downtrend with the technical target at $74,730, or down 27% from current levels.
The relative strength index, or RSI, is at 41 and has dropped from 64 on June 9, suggesting that the downward momentum has been steadily building up.
As Cointelegraph reported, $100,000 remained a key support level for the BTC/USD pair, and if lost, it will open the door to a deeper correction toward $93,000 or lower.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
