Bitcoin Faces Potential $100,000 Drop Amid Bearish Pressure

Arthur Hayes Warns of Significant Bitcoin Correction

Bitcoin is currently experiencing increased bearish pressure as concerns mount over a potential drop below the critical $100,000 level. Following an all-time high of $123,000 on July 14, the cryptocurrency has already seen a 7.7% decline, with analysts warning of an 18.7% further correction if current trends persist. Arthur Hayes, co-founder of BitMEX and CIO of Maelstrom Fund, has raised alarm bells regarding macroeconomic risks and shifting investor sentiment, predicting a potential decline to $100,000. In a precautionary move, Hayes recently liquidated $13 million in crypto assets to hedge against a potential downturn.

On-Chain Data and Technical Analysis Point to Further Downside

On-chain data indicates a significant increase in selling activity among Bitcoin hodlers as prices dip below $112,000, with notable inflows recorded on Binance of nearly 7,000 BTC per day. Whales in the market are accumulating over 111,000 BTC near the $107,160 mark, suggesting a potential support zone. From a technical perspective, the $100,000 level is considered a crucial psychological and historical support, with Fibonacci retracement levels at $106,000 and $102,000 identified as potential correction targets.

Market Sentiment and Long-Term Outlook

Weak U.S. employment data and global trade tensions have exacerbated market sentiment, leading to nearly $1 billion in Bitcoin ETF outflows. Despite the short-term bearish outlook, long-term holders remain optimistic, with 53% of Bitcoin's supply held by investors with a history of long-term positions. This concentration of dormant coins suggests that while immediate prospects are uncertain, the long-term fundamentals of Bitcoin remain strong, hinting at potential recovery following a correction.