Is Bitcoin Downtrend Over? Here are Factors to Consider

Bitcoin retraced to a low of $103,700 on Friday. It lost the $106k support for the first time in more than seven days.

The largest coin experienced one of its retracements since it registered a new ATH. Nonetheless, it marks its fourth day of consistent declines. The downtrend began after Bitcoin (BTC) faced strong rejections around $ 110,000.

The bulls failed to overturn the bearish sentiment as further negative sentiment hit the market. Investors were still recovering from the threat of a possible resumption of tariffs. The United States announced a 50% levy on EU last week but postponed when it would take effect.

POTUS expressed his displeasure over China taking the pause to the trade war for granted. He said the Asian giant failed to uphold its side of the deal and hinted at an appropriate response. The uncertainty across the geopolitical policies sees traders exercise caution as they anticipate more bearish developments.

Nonetheless, onchain pointed to the declines before it started. A previous analysis highlighted the growing disenchantment the previous BTC price. The article cited the presence of small FOMO but stated that it would not be enough to cause an uptrend.

The trend is ongoing and the largest coin risks further descent. Data from CryptoQuant shows that demand growth is heating up. A post from the platform shows while the asset remained bullish, it may see more retracement due to the outline reading.

The derivatives market is heating up. Popular trader James Wynn said some corrupt entities control the crypto market. He reached this conclusion after multiple liquidations in the last three days.

Data from Coinglass shows that more traders will likely reach a similar conclusion, as the bulls lost over $700 million on their long positions. Nonetheless, the apex coin is seeing notable buying pressure at the time of writing.

Bitcoin Pulls Back

The asset rebounded and trades at $104,676 at the time of writing. The 2-hour chart showed the pull back happened around 18:00 UTC. However, BTC is still at risk of more decline. The image below shows that after the slight recovery, a doji followed, indicating that selling action resumed. It is printing a red candle, suggesting that the bears are edging

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