Bitcoin (BTC) market correction after hitting a new high of $107,14

Bitcoin experienced a market correction after hitting a new high of $107,000 on Sunday. The world's largest cryptocurrency is now trading at $102940

Bitcoin price dropped further on Monday, extending the recent correction from the new all-time high of $107,114. This move pulled the entire crypto market down with it.

What Happened: Bitcoin is now trading at $102,941, falling below the key $103,000 level. The world’s largest cryptocurrency is down 4.23% over the past 24 hours.

The total crypto market capitalization dropped 2.7% to $3.36 trillion.

The sudden price swing also led to massive liquidations. Data from CoinGlass shows $651 million worth of positions were liquidated over the past 24 hours as Bitcoin price moved between $107k and $102k.

The liquidations were largely concentrated on BTC, with about $500 million in open positions liquidated on Binance alone.

From a technical perspective, Bitcoin swept last week’s high of $105,663 but met strong selling pressure. This caused BTC to drop from its new high to a local bottom of $102,579.

The next support for Bitcoin lies near $101,500, while resistance remains at $105,000.

Related Link: Bitcoin Drops Below Key Level As Hoarder FOMO Hits New Highs: 5 Things To Know This Monday

Why It’s Important: Bitcoin’s volatility dropped to a 10-month low, which could be a sign that the cryptocurrency is becoming less risky for new investors.

However, market experts warn that investors should be cautious about trying to “catch the falling knife” due to Bitcoin’s volatility.

The recent price movement has created a bearish engulfing candlestick, undoing Sunday’s 3.23% gain. Continued selling pressure could push Bitcoin down to $101,000, a key support level.

A breakdown below this level could see BTC trade lower, between $100,300 and $99,800, based on technical chart patterns.

But overall, the outlook for Bitcoin remains bullish. As the cryptocurrency slows down entering this support area, it could set the stage for the next all-time high targets of $118,000 and $135,000.

The crypto market’s current state reflects growing uncertainty. While Bitcoin struggles to hold above $103,000, the steeper declines in Ethereum and other altcoins suggest deepening caution among traders.

Bitcoin is currently maintaining a market capitalization of over $2.04 trillion, with daily trading volumes exceeding $58 billion.