Bitcoin News: BTC Tests Key Support Amid Market Pullback – What's Driving the Dip?

2025-11-04 08:46:22

Bitcoin (BTC) is facing renewed pressure, dipping to $107,494 in early trading with a 2.21% daily decline, as the cryptocurrency market grapples with fading momentum and technical breakdowns.

BTC’s Recent Decline: Testing $107K Support

Bitcoin has slid below $108,000, marking a 2.21% drop from recent highs and extending a weekly loss to 1.72%. The current price of $107,494 hovers near critical support levels, with traders watching for a potential retest of $105,000 if the downside persists. Volume has spiked 20% to $50 billion+, reflecting heightened activity but also increased selling pressure across the $2.1 trillion crypto market.

Key Factors Behind the Pullback

Several elements are contributing to the current bearish sentiment:

Institutional Caution: On-chain data shows average holder costs at $55,900, implying 93% profits, but weakening demand from large players is capping upside as inflows slow.
Technical Breakdown: BTC struggles above the $113,000 short-term holder cost basis, a battleground for bulls and bears, with failure risking a slide to $88,000.
Macro Uncertainty: Data-dependent Fed signals and soft economic indicators suggest a possible slowdown, eroding confidence in risk assets.
Cycle Shift: Experts debate the end of the traditional four-year halving cycle, with complex consolidation expected before a potential reversal.

These dynamics highlight a market in transition, where high profitability meets liquidity constraints.

2025 Bitcoin Price Prediction: $130K-$200K Consensus

Bitcoin price prediction for 2025 remains optimistic, targeting $130,000-$200,000 by year-end. Analysts see $123,000 in the near term, with potential for $131,500 on ETF momentum. Bull catalysts include rising adoption; bear risks: volatility testing $100,000 support.

For investors, how to buy Bitcoin via compliant platforms ensures secure entry. How to sell Bitcoin and how to cash out Bitcoin provide liquidity options. Sell Bitcoin for cash and convert Bitcoin to cash facilitate fiat conversions.

Trading Strategy: Support Plays with Stops

Short-term: Long near $107,000 targeting $110,000, stop $105,000 (2% risk). Swing: Accumulate at support, staking for 5% APY. Watch $107,500 hold; below $105,000, exit.

In summary, Bitcoin’s dip to $107,494 tests support amid caution, but 2025’s $130K-$200K forecast signals resilience in a cycle-shifting landscape.

BTC-5.98%

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