BTC Price Dips Below $105K Amid Market Reset, Analysts Call It a “Controlled” Pullback

Bitcoin fell below $105,000 on Friday, hitting a 15-week low and revisiting support first investigated during last week’s tariff-sparked sell-off.

Short-term momentum weakened after repeatedly failing to stay above $112,000-$116,000, leaving the price compressed between the $104,000-$107,000 demand zone and stiff resistance near $120,000-$124,000 (former ATH range).

BTC's price trends to the downside on the daily chart. Source: BTCUSD on Tradingview

Technicians note that Bitcoin price has now interacted with its 200-day moving average for the first time in six months, while the 20- and 50-day moving averages are trending lower, typical of a cooling phase after a vertical rally.

BTC price tests support between $104K-$107K as leverage expires

Despite the major decline, Bitcoin rose Derivatives data The positioning suggests “controlled deleveraging” rather than panic. Open interest has reset to mid-year levels and funding has turned negative during the flow, suggesting that speculative buying has been forced out.

Spot flows remain more stable by comparison, suggesting that longer-term bondholders are largely unaffected.

If the bulls reclaim $110,000 to $113,000, a bounce toward $116,000 to $120,000 is likely; Investors are losing $104,000 to $106,000, with many traders looking to “fill the wick” of $101,000 to $102,000, with some warning of a quick $98,000 to $100,000 mark if liquidity dwindles.

Macro Cross-Currents: Banks, Gold, and the Federal Reserve

The overall pressure amplified this move. Renewed pressure on US regional banks, in a repeat of what happened in 2023, has fueled risk-off flows as trade tensions between the US and China return.

Meanwhile, gold hit new highs, highlighting safe-haven demand as cryptocurrencies cool. Market odds favor a possible interest rate cut by the Federal Reserve at its late October/early November meeting, which could ease financial conditions and support a crypto recovery in the fourth quarter; However, a hardening surprise is likely to extend the consolidation process.

Bitcoin ETF inflows have eased from a record pace, with select US cryptocurrency funds recording net outflows this week as investors offload risks.

However, the broader investment issue, European Training Foundation Access, institutional adoption, and a structurally constrained supply of Bitcoin remain intact, according to several desks framing the slide as a healthy reset after an “Uptober” glut.

Altcoins perform poorly while Bitcoin dominance rises

Altcoins extended losses as liquidity shifted to Bitcoin and stablecoins. ETH, BNB, SOL, and XRP are down 7-12% on the day, while higher beta names like DOGE and ADA have fallen more sharply for a week now. Historically, this phase of increasing Bitcoin dominance continues until Bitcoin stabilizes and risk appetite returns.

Key levels to watch include A Bitcoin price Support $104,000 – $106,000, then $101,000 – $102,000; Resistance $110,000 – $113,000, $116,000, $120,000 – $124,000.

A decisive close above $120,000 would reaffirm the uptrend and refocus on new highs. Until then, analysts expect range-bound, catalyst-driven Bitcoin price movement, as leverage remains light and the market absorbs macro signals.

Cover image from ChatGPT and BTCUSD chart on Tradingview

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