Bitcoin has officially lost the $103,600 support level following shocking geopolitical developments. The US military reportedly launched attacks on Iran’s nuclear facilities, triggering widespread panic and risk-off behavior across financial markets. The crypto space was no exception. Bitcoin, which had been holding above key support for weeks, rapidly sold off as fear gripped traders and investors alike.
This breakdown marks a shift in sentiment. Bulls have lost control of short-term momentum, and the broader market now braces for a potential drop below the critical $100,000 psychological level. With no immediate signs of relief, selling pressure may persist unless strong demand emerges near range lows.
Top analyst Carl Runefelt pointed out that Bitcoin Dominance (BTC.D) has just surpassed its previous high, indicating that while Bitcoin bleeds, altcoins are under even more pressure. This capital concentration in Bitcoin could be interpreted as a flight to relative safety within the crypto ecosystem, but it also highlights growing uncertainty and lack of confidence in higher-risk tokens.
Bitcoin Faces Pivotal Test As It Hovers Near $100K
Bitcoin is at a critical juncture as it flirts with a breakdown below the psychological $100,000 mark. After weeks of holding above this level, the market is beginning to show signs of fatigue. Yet, despite the selling pressure, bulls have managed to defend the $100K threshold for now, suggesting it may be forming a new base of support. A sustained hold above this level could trigger a sharp recovery, potentially reigniting momentum toward previous highs.
However, the macroeconomic backdrop remains highly volatile. Rising US Treasury yields continue to tighten liquidity conditions, while the Federal Reserve’s decision to hold interest rates adds further uncertainty. Meanwhile, escalating conflicts in the Middle East, including the recent US attack on Iranian nuclear facilities, have injected fear across global markets. Bitcoin has historically responded to geopolitical risk with mixed behavior—sometimes acting as a safe haven, other times following broader market risk aversion.
Adding to the complexity, Carl Runefelt recently noted that Bitcoin Dominance has just broken above its previous high. This signals that capital is concentrating on Bitcoin, while altcoins suffer heavier losses. The shift reflects growing caution in the market, with investors opting for perceived relative safety over speculative risk. Whether this capital rotation will eventually fuel another leg up for Bitcoin—or mark the start of a broader downtrend—remains to be seen in the coming days.
Bitcoin has now been trading above the $100K level since early June, indicating that the price may be attempting to stabilize around this range. Yet failure to reclaim the all-time high near $112,000 continues to cap bullish momentum. If bears force a breakdown below $100K, the next support may not emerge until the $94K–$95K zone.
BTC Price Analysis: Bulls Defend Critical Support
Bitcoin is currently trading at $102,506, hovering just above the key support zone at $100,000. The chart shows BTC failing multiple times to break through the $109,300 resistance level, resulting in a gradual decline and increased selling pressure. The $103,600 area—which previously acted as support—has now been lost, confirming weakness in short-term bullish momentum.
On the 3-day chart, price remains above all major moving averages, including the 50, 100, and 200 SMAs, signaling that the macro trend is still intact. However, volume has been decreasing as the price consolidates, suggesting hesitation among market participants. A decisive move—either a bounce from $100K or a breakdown below it—could set the tone for the next phase of Bitcoin’s trend.
The price action suggests that BTC is forming a new local range between $100,000 and $109,000. If the bulls manage to hold $100K and push back above $103,600 in the coming sessions, a retest of the range highs may follow. On the flip side, a sustained move below $100K could open the door for a sharper correction toward $95,000 or even $92,000 in the short term. Market watchers are closely monitoring this level as the battle between bulls and bears intensifies.
Featured image from Dall-E, chart from TradingView
