The broader crypto market retreated today, with Bitcoin price dropping more than 1.5%, indicating a cautious stance of traders.
Notably, the plunge in the digital assets space comes amid a gloomy momentum recorded in the broader financial market and the US stock market ending its Wednesday session in the red.
So, what is the likely reason behind the recent pullback in BTC price. Where the flagship crypto might be heading next.
Bitcoin Price Slips Amid Macroeconomic Concerns
BTC price has slipped around 2% today amid a broader crypto market selloff and exchanged hands at $107,400. Despite the plunge, its trading volume rose more than 3% to $53.1 billion.
Notably, the crypto has moved between the $107,400 and $110,384 range in the last 24 hours. However, it’s worth noting that Bitcoin price has still advanced over 2% in the weekly chart. It rose from the 7-day low of $100,500.
Meanwhile, the recent dip comes amid a broader crypto market selloff. The global crypto market cap lost more than 1.7% in the last 24 hours. It was resting at $3.38 trillion.
This recent retreat comes as the Wall Street indices have erased their recent gains on Wednesday. The gloomy momentum in the stock market comes amid rising Middle East tensions.
For context, the US is reportedly considering partially evacuating its Iraqi embassy due to increased security threats.
This has spooked investors, while erasing the slight gains the market has noted after the recent US CPI release.
What Lies Ahead for BTC Price?
The analysts have shared mixed insights on the potential future trajectory of Bitcoin price. While some deem the current retreat as a short-term correction, which is usually considered healthy in the bull cycle, others are predicting a likely breakout for BTC in the near future.
Meanwhile, in a recent X post, analyst Ali Martinez noted that if BTC price fails to hold its $108,300 support, it could plunge to the $107,000 level.
Considering that, it appears that BTC might continue to stay in the red, with Bitcoin price’s ongoing momentum indicating further retreat.
Simultaneously, CryptoQuant analyst Axel Adler Jr noted a “soft reversal point” for Bitcoin as long positions close and short volume increases.
With funding remaining positive but open interest declining, the expert predicted a short-term correction or consolidation below $108,000. CoinGlass data showed that Bitcoin Futures Open Interest fell 2.5%, indicating the cautious stance of traders.
However, Michael van de Poppe has shared a different perspective on the flagship crypto’s likely future performance.
He noted that “Bitcoin continues to fight the final resistance.” In addition, van de Poppe said that once Bitcoin price soars past the $110,500 mark, it could continue its run towards the north.
Echoing a similar sentiment, expert Carl Moon said that BTC is likely to hit $112,800 in the near future if the bulls remain in control.
On the other hand, another well-known figure Javon Marks has set a Bitcoin price target at $116,652, reflecting his confidence in the asset.
Having said that, it appears that the investors are downplaying the risks of the short-term correction while maintaining their bullish outlook on the BTC’s future run.
