$BTC

Currently Bitcoin (BTC) is trading around $104,361, reflecting a modest recovery after dipping below $101,000 earlier today. This decline was influenced by geopolitical tensions, notably a public dispute between Donald Trump and Elon Musk, which dampened investor sentiment across the cryptocurrency market. 

Technical indicators suggest a cautious outlook. The Relative Strength Index (RSI) stands at 42.66, indicating neutral momentum. Bitcoin is currently trading below its 21-day and 50-day Simple Moving Averages (SMAs), signaling short-term bearishness, while remaining above the 200-day SMA, which supports a longer-term bullish perspective.

Key support levels are identified at $86,000 and $80,000, with significant buying interest observed between $85,000 and $92,000. These zones could provide a buffer against further declines. However, a head-and-shoulders pattern on the daily chart raises concerns about potential downside risks.

On-chain data reveals a decrease in network activity, with the Bitcoin Network Activity Index hitting a yearly low. This decline in active addresses and transaction volume suggests waning demand, which could exert additional pressure on prices.

In summary, while Bitcoin shows signs of resilience, prevailing technical and on-chain indicators point to a cautious market environment. Traders should monitor support levels closely and remain vigilant to macroeconomic developments that could influence market dynamics.