Bitcoin Price Dips Again: Analysts Warn of Potential Deeper Decline
2025-07-03
Bitcoin (BTC) is facing renewed selling pressure this week, raising concerns among investors about the possibility of an even sharper decline. After several attempts to break higher, Bitcoin’s price fell back under crucial support levels, signaling a cautious mood in the market.
Analysts are warning traders to prepare for further volatility as key technical indicators suggest Bitcoin may be at risk of sliding toward lower price targets.
Recent Price Movements and Current Levels
Bitcoin traded near $105,250 on Tuesday, down from the highs it tried to reclaim on Sunday and Monday when it approached $109,000.
Despite some early-week optimism, the cryptocurrency struggled to hold above resistance levels, leading to increased selling from traders looking to lock in profits. This bitcoin dip has worried market participants who now see reduced momentum for any immediate rebound.
The live price of Bitcoin at the time of writing is around $106,201, according to CoinMarketCap data. Over the past 24 hours, Bitcoin is down nearly one percent.
With a 24-hour trading volume exceeding $45 billion and a total market capitalization of about $2.1 trillion, Bitcoin remains the dominant cryptocurrency, but its price action has clearly turned cautious.
Technical Outlook and Analyst Warnings
Market analysts, including those from Bitfinex, have highlighted that Bitcoin has dropped below two important support levels. This move suggests either a local price top is forming or a consolidation phase is beginning.
The break below moving averages is viewed as a sign that short-term traders are booking profits rather than holding for further gains.
Charts show Bitcoin is now caught between a downtrend line and its moving averages. While the upward slope of the moving averages gives some hope to bullish traders, the relative strength index (RSI) hovering near the midpoint indicates a lack of strong upward momentum.
A sustained move below these moving averages could pull the BTC price toward $104,500 and possibly even the psychologically significant $100,000 level.
Analysts caution that if Bitcoin fails to hold $104,500, sellers may gain further control, potentially pushing the price down to test the $100,000 level.
On the other hand, a sign of strength would be a recovery above the 20-day exponential moving average, which might enable Bitcoin to challenge the downtrend line and aim for previous highs, including the all-time high of nearly $112,000.
Read more about Bitcoin (BTC):
Bitcoin Price (BTC), Market Cap, Price Today & Chart History
BTC to USD: Convert Bitcoin to US Dollar
Key Support and Resistance Levels to Watch
Traders are closely monitoring several critical levels. Support is first seen around $104,500. If this level fails, the next major support lies at $100,000.
Resistance levels include the 20-day moving average and the downtrend line overhead. A move above these could open the way for a stronger rally, but until that happens, the market remains vulnerable to further declines.
Broader Market Sentiment
The recent Bitcoin dip reflects broader uncertainty in global financial markets, where investors are weighing economic risks, regulatory changes, and central bank policies.
Cryptocurrencies, known for their high volatility, often react strongly to shifts in investor sentiment. For now, traders appear cautious, with many awaiting clearer signals before committing to new positions.
Find other interesting articles on Bitrue blog! You can also directly buy selected assets on Bitrue by registering here!
Frequently Asked Questions (FAQ)
What is "dip" in crypto?
In cryptocurrency, "the dip" or "buy the dip" refers to an investment strategy where an investor buys a crypto asset when its price is falling. The goal is to get the asset at a lower price, hoping it will increase again in the future.
Why does Bitcoin go up and down?
Bitcoin's price goes up when demand for it increases, and it goes down when demand decreases.
When will Bitcoin run out?
The last Bitcoin is expected to be mined around 2140, which is about 118 years from now. After new Bitcoins stop being issued in 2140, miners will be rewarded solely through transaction fees.
What is "buy on dip"?
"Buy the dip" is an investment or trading strategy where you buy an asset (like stocks or crypto) when its price is falling. The idea is to take advantage of a temporary price drop, assuming the price will recover and isn't a permanent decline.
Can Bitcoin reach $200,000 in 2025?
Some analyses predict Bitcoin could rise to $200,000 this year, based on a bullish signal from its "cleanest trend indicator," which appeared for the first time since mid-2024.
Who is the creator of Bitcoin?
Satoshi Nakamoto is the pseudonym used by the presumed individual or group who designed Bitcoin, authored the Bitcoin whitepaper, and created the original Bitcoin software implementation.
Disclaimer: The content of this article does not constitute financial or investment advice.
