Bitcoin (BTC) experienced a significant decline of nearly 5% within the last 48 hours, influenced by escalating global tensions following an Israeli airstrike on Iran on June 12. As financial markets reacted to this development, Bitcoin's value fell below $103,000 before making a slight recovery to the $105,000 range.
Prominent market analyst Ali Martinez has emphasized the importance of maintaining a specific support level for Bitcoin to avert a substantial market correction. In a post on X dated June 13, Martinez provided insights into Bitcoin's price trajectory, indicating that the cryptocurrency has exhibited a range-bound movement since 2024, despite experiencing significant price fluctuations and prolonged corrections.
Martinez's six-month analysis reveals that Bitcoin has primarily fluctuated between $78,500 and $110,000, creating several crucial support and resistance levels within this range. Notably, during this period, Bitcoin has tested the upper boundary five times and rebounded off the lower boundary four times.
In light of Bitcoin's recent downturn and the potential for increased market volatility, particularly amid the risk of a broader conflict in the Middle East, Martinez cautions that it is essential for Bitcoin bulls to maintain a price above $100,000. This level serves as a critical support point in the market. He explained that if Bitcoin closes decisively below $100,000, the likelihood of a decline back to the lower boundary at $78,500 increases significantly, representing a potential 25% loss for BTC holders.
Conversely, sustaining prices above $100,000 would preserve bullish momentum and enhance the chances of revisiting the $110,000 resistance zone, possibly paving the way for a breakout beyond the current trading channel. However, a drop below $100,000 might not lead to an immediate decline to $78,500. Martinez also pointed out that support levels at $92,000 and $86,000 could offer Bitcoin bulls a chance to regain market dominance.
Currently, Bitcoin is trading at $105,194, reflecting a 1.79% decrease over the past 24 hours. Meanwhile, the asset's daily trading volume has surged by 37.04%, indicating an uptick in market transactions and trading activity. With a market capitalization of $2.07 trillion, Bitcoin continues to lead the cryptocurrency market, holding a commanding 62.75% market dominance.
