Bitcoin (BTC) has entered a slowdown phase after its recent rise, drawing attention to historical patterns of short-term declines during geopolitical conflicts.
Current data shows a slight price decline, but past events suggest that temporary pullbacks often lead to stronger rebounds. Market watchers are now closely following the $106,000 level, which may determine the next trend.
Increased liquidation activity and rising trading volume shape the sentiment surrounding Bitcoin's price movement. The situation remains volatile as analysts evaluate short-term bearish signals against historical recovery trends.
●▪︎ Bitcoin price is declining as sellers enter a major area
The price of Bitcoin has dropped from a local high of $108,900 to around $106,600, indicating a shift in market momentum.
According to IT_Tech_PL's chart, a confirmed sell signal appears at the $108.9 thousand level. The SuperTrend indicator has turned red, indicating that short-term bulls have lost control.
The main resistance area is between $107,500 and $108,200. At the same time, support is forming between $106,000 and $105,200, with additional demand near $104,800. The market has become cautious, with Bitcoin now trading below a major trendline.
According to cryptocurrency researcher Ted Belouz, the price of Bitcoin usually declines during armed conflicts and then rebounds strongly later. He cited the annexation of Crimea, tensions between the US and Iran, and the Ukraine war as examples. In each case, Bitcoin faced a short selling wave followed by a strong recovery over weeks or months.
The most recent example of this occurred during the conflict between Israel and Hamas in October 2023. The price of Bitcoin fell by 7% to $27,800 but recovered by 22% to $34,000 within a month. Bitcoin experienced a similar price movement during Red Sea tensions, where it dropped by 6% before rising by 15% by February.
●▪︎ Short-term trend changes with rising Bitcoin trading volume
Market data from CoinGecko shows Bitcoin trading at $106,248, down 0.64% over the past 24 hours. Despite this decline, trading volume has increased by more than 47% compared to the previous day. This rise in activity indicates growing market interest as Bitcoin approaches key support levels.
Traders are closely monitoring the $105,200 level as a critical threshold. Any breach below could open the way towards $104,800. On the other hand, a recovery of the $107,200 level may allow buyers to regain control in the short term.
Technical analyst IT_Tech_PL pointed out the necessity for Bitcoin to maintain a price above $106,000. Failing to achieve this could confirm a trend collapse and increase the decline. Buyers are trying to defend this area, but pressure is increasing from upper resistance zones.
