Bitcoin’s price continues to face mounting pressure as it hovers near key support levels. With sellers pushing toward the $102,000 zone, BTC is now at a moment that may mark the final washout before a major rebound. The coming days could be decisive in determining whether Bitcoin finds its footing or continues its decline.

Bitcoin Faces Pressure Below $108,000 As Bears Regain Control

Crypto analyst Crypto Candy shared insights into Bitcoin’s latest price action, noting that the flagship cryptocurrency tried to hold the $107,000–$108,000 support zone but ultimately failed to do so, closing below that level. This development signals a potential shift in market dynamics, as the $107,000–$108,000 zone may now act as a strong resistance area. 

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Crypto Candy further explained that if the downward momentum continues, Bitcoin could retrace deeper toward the $99,000–$101,000 range, an area viewed as a critical support zone where fresh buying interest might emerge. A dip into this range could also help clear out weak positions and create healthier conditions for a long-term rebound.

However, the analyst added that if Bitcoin manages to reclaim and hold above the $107,000–$108,000 zone, it would signal that bullish strength is returning to the market. Such a breakout could restore confidence among investors, paving the way for renewed upward momentum and possibly another push toward higher targets. 

$102,000: The Ideal Flush Zone Before The Next Big Move

In his latest BTC daily update, Super฿ro emphasized the critical role of the $102,000 support zone, describing it as an ideal area for the market to flush out remaining leveraged long positions. This kind of shakeout is often necessary to clear weak hands and set the stage for a more sustainable bullish continuation.

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Super฿ro further noted that once this cleanup phase concludes, Bitcoin could see a sharp rebound, primarily fueled by a short squeeze from traders caught on the wrong side of the market. As shorts begin to close their positions, buying pressure could intensify, creating a rapid upward move that reclaims lost levels. 

That said, the crypto analyst has warned that a break below the $101,000 level would not be ideal, as it might signal that market weakness is deeper than anticipated. Still, he maintains confidence in the broader picture, highlighting that high-timeframe (HTF) indicators remain supportive of a potential rebound.

Presently, the price of BTC is hovering around $104,000, indicating a more than 3% decline over the last 24 hours. Meanwhile, its trading volume has picked up pace, rising by over 79% in the same time frame.

Featured image from Pixabay, chart from Tradingview.com

Ethereum remains under immense selling pressure, shaving over 30% from March 2024 highs. With prices recently dropping below $3,000 and sellers doubling down, there could be no reprieve for optimistic buyers in the sessions to come. 

Analyst Expects One More “Washout” To $2,700

Taking to X, one analyst notes that the coin is still bearish and moving inside a falling wedge. The trader predicts that ETH will continue dropping below immediate support levels. 

In a post, the trader predicts a potential “washout” for ETH that would likely see the coin fall below $2,700. The analyst added that despite the prevailing fear, the overall structure of Ethereum price action remains unchanged. 

The Ethereum candlestick arrangement in the daily chart shows that Ethereum prices are within a bearish breakout formation. Following the sharp losses in mid-April, buyers have yet to unwind losses. 

Accordingly, unless there is no strong push above $3,300 and the descending wedge, the odds of sellers further pressing on remain high. In the current formation, Ethereum has strong support at $2,800. If there is a “washout,” as the analyst says, ETH may fall below $2,700 towards $2,600 and $2,200, two of the immediate support levels.

Prospects Of Spot Ethereum ETFs Dimming

 

Adding fuel to the bearish fire are growing odds that the United States Securities and Exchange Commission (SEC) might reject the approval of spot Ethereum exchange-traded funds (ETFs) this month. This speculation stems from analysts pointing to the commission potentially classifying Ethereum as a security, derailing ETF approval.

A finance lawyer on X confirmed that the United States SEC is considering classifying ETH as a security in their upcoming spot ETF decisions. Unlike Bitcoin, whose spot and futures ETFs were approved without such scrutiny, ETH faces this additional hurdle. 

Should the Gary Gensler-led commission deem ETH security, dire consequences would exist. While all spot ETF applications could be denied, there would be more. As part of Grayscale’s Ethereum trusts, ETHE, terms and conditions, if the United States SEC classifies ETH as a security, all ETHE will be liquidated, and the trust closed. 

In late April, Consensys, led by Ethereum’s co-founder Joseph Lubin, said they are suing the United States SEC to protect the broader crypto ecosystem. By threatening to classify ETH as a security, ConsenSys said the regulator “would jeopardize the United States’ ability to use Ethereum and similar blockchain technology.”

Feature image from Canva, chart from TradingView