Bitcoin Battles Key Support at $104K Amid Bearish Signals

Bitcoin is facing a crucial moment as it tests the 26-day Exponential Moving Average (EMA), currently acting as the last major support before a deeper correction. Priced around $104,600, BTC's failure to hold this dynamic support could open the door to further downside, with the 50 EMA—still below the psychological $100,000 level—emerging as the next critical target.

After reaching all-time highs earlier this year, Bitcoin's bullish momentum has stalled. The recent price structure shows increasing vulnerability, and the 26 EMA is now more than just a technical reference—it’s a make-or-break level. Historically, this EMA has provided strong support in upward trends, but if it breaks, the 50 EMA could be tested for the first time in weeks, signaling the largest retracement since BTC's peak.

The $100,000 mark carries both technical and psychological weight. A break below it could trigger cascading liquidations and deteriorate market sentiment, potentially shifting the narrative from bullish continuation to full-blown correction.

Adding pressure is the macro backdrop. While declining exchange reserves limit immediate sell pressure, they also suggest a lack of buying momentum to sustain the rally. If bulls can’t reclaim ground above the 26 EMA quickly, it may confirm the beginning of a broader bearish reversal rather than a temporary dip.

At this stage, the setup is binary: either Bitcoin rebounds from the 26 EMA or it risks a drop toward the 50 EMA. What unfolds in the coming sessions could define BTC’s short-term trajectory, as the market decides whether the ATH-driven euphoria was sustainable or just the top of a cycle.