Bitcoin Slump Continues: Key Support at $108K Faces Test
The Bitcoin slump dragged on as BTC hovered near $109,000, testing a strong horizontal support at $108,000. A massive options expiry saw 146,000 BTC contracts expire on Friday, triggering $1.7 billion in liquidations, mostly long positions. Despite the heavy sell-off, bulls limited losses to under 1%, suggesting the market may be oversold.
Technical analysis signals further downside risks. On the 4-hour chart, a potential bear flag points to a drop toward $105,000 if the $108,000 support breaks. Daily charts show an impending death cross between the 50- and 100-day SMAs, heightening selling pressure on a breakdown below $108,000.
The weekly chart warns of a fall to $98,000 if support fails, as a long-term ascending trendline converges with that level. Short-term Stochastic RSI readings are oversold, offering a possible bounce, but this weekend remains crucial for the Bitcoin slump outlook.
Bearish
The analysis highlights several bearish technical signals that point to further downside. The massive options expiry generated $1.7 billion in liquidations, similar to previous oversold bouts that preceded stronger pullbacks. A bear flag on the 4-hour chart and an impending death cross on daily SMAs mirror patterns seen in 2022’s prolonged correction, suggesting renewed selling pressure if key supports fail. The weekly chart’s multi-year ascending trendline and horizontal levels at $105K and $98K provide targets for a deeper slide. Although short-term indicators are oversold, limiting panic, the convergence of bearish factors and critical support tests suggests a higher probability of a further drop before any sustainable recovery.