BTC Falls Below $106,000: Opportunities and Risks Amid Market Volatility

BTC current price and performance after falling below $ 106000

Image:https://www.gate.com/trade/BTC_USDT

As of the time of writing, the price of BTC is approximately: $105,192, with a daily high of $107,645 and a low of $103,597, having fallen below $106,000 for two consecutive days.

Market background and driving factors

1. Federal Reserve policy expectations waver: Recently, the market originally anticipated that the Federal Reserve would announce an interest rate cut on June 18, but according to Binance reports, the expectation for a rate cut has basically been eliminated, undermining the confidence of crypto bulls and leading to further pressure on BTC.
2. Geopolitical Shock: Investor concerns about U.S. intervention in the Iran-Israel conflict are rising, leading to pressure on major cryptocurrencies, with BTC falling below $106,000, resulting in a noticeable increase in market risk aversion.
3. New perpetual contracts launched: On June 19, Coinbase International will launch HOME-PERP and SPK-PERP contracts, which may lead to trading diversion due to expectations of new products, causing a certain impact on spot liquidity in the short term. .

Technical Analysis and Support Resistance

• Support level:

- $ 105,000 serves as short-term psychological support, with multiple retests not showing significant falls;
- If it falls further, $ 103,000 will be the next key defense line.

• Resistance level:

- $ 108,000 is the previous high point area, and the enthusiasm of the bulls to buy back will be tested.
- $ 110,000 and above need to observe the trading volume.

• Indicator Observation:

- The 4-hour RSI has fallen to around 40, indicating a potential short-term oversold rebound demand;
- The MACD shows a bearish crossover, indicating that the medium to short term remains bearish.

Risk Warning and Operational Suggestions

• Control your position and enter in batches: Beginners may consider keeping the total position within 10%-20%, relying on around $105,000 for batch buying to avoid the risk of bottom fishing all at once.
• Set stop-loss and take-profit in a timely manner: If you open a long position, you can set the stop-loss below $ 104,000; if there is a short-term rebound to the range of $ 108,000–$ 109,000, you can reduce your position in batches to lock in some profits.
• Pay attention to the progress of macro events: it is recommended to track the Federal Reserve’s decisions and the evolution of geopolitical situations in real-time, as hot news often triggers sharp short-term fluctuations in cryptocurrency prices.

Summary and Outlook

Currently, after BTC falls below $ 106000, market sentiment is becoming cautious, but it also provides an opportunity for investors with capital advantages to accumulate at lower levels. For beginners in practice, the core is to adhere to capital management and risk control, combined with macro events and technical signals, in order to progress steadily in a volatile market. If it can recover above $ 108000 in the future, it may restart a new round of increases; otherwise, further analysis should be conducted when it pulls back to around $ 103000.