Bitcoin Faces Potential $100K Breakdown Amid Widespread Market Liquidations

Bitcoin is experiencing a significant downturn, trading near $103,600 after a more than 10% loss over the past week, with concern rising over a potential fall below the critical $100,000 support level. The decline is driven by factors such as ETF outflows, leveraged long liquidations, and technical breakdowns, which have triggered substantial liquidations and bearish market sentiment, as indicated by the Bitcoin Fear and Greed Index dropping to 42%. While some altcoins like Tezos show potential to benefit from Bitcoin's weakness due to their negative or minimal correlation with BTC, the broader crypto market remains closely tied to stock market sentiment, with recent data suggesting investors may be overly optimistic about equities, potentially foreshadowing a deeper crypto sell-off similar to 2021. Key support levels for Bitcoin include $100,000 and $94,000, with a break below these potentially signaling the end of the current uptrend and a move toward a bear market bottom between $50,000 and $55,000. Despite the ongoing pressure, some indicators suggest accumulation may be underway, and a rebound above $110,000 could pave the way for new all-time highs, though Ethereum faces its own challenges needing to surpass $3,700 to sustain a bullish trend. Overall, the market is at a critical juncture with significant downside risk balanced by pockets of potential resilience and opportunity in select altcoins.