Bitcoin price bearish momentum grows as third day of losses weighs on buyers
Bitcoin breached the consolidation support around $106,800
Bitcoin price is trading near $106,400 during the European session on Friday, attempting a retest of the prior five-day consolidation base after a breakdown that began during Thursday’s North American trading.
The move has placed pressure on short-term bulls, but technical structure suggests the broader bullish trend is not invalidated yet.
- Bitcoin extends selloff to $104,750 before rebounding toward $106,400
- Price trades inside key Fibonacci zone of $104,200 to $106,000
- Death cross on 4HR chart raises risk of deeper retracement to $104,000
The downside breakout occurred as Bitcoin breached the consolidation support around $106,800 on strong volume. That move ended a period of limited movement, where bulls had failed repeatedly to push past a supply zone that formed after profit-taking from the all-time high at $112,000. The inability to clear that overhead resistance eventually opened the door for the third consecutive day of decline, pointing to a near-term momentum shift in favor of sellers.
BTC price dynamics (April - May 2025). Source: TradingView
The breakdown extended into today’s Asian session, where Bitcoin tapped a 10-day low at $104,750. However, a rebound during the Asian and now European sessions shows some short-term recovery as price hovers near the base of its previous consolidation, suggesting a possible retest and rejection setup is developing.
Bitcoin 4hr death cross and RSI near 38 hints at extended dip to 0.786 fib level
From a broader technical perspective, Bitcoin is still within the discounted portion of its dominant 4-hour bullish swing that began at $102,000 and peaked at $112,000. Current price action sits between the 0.5 and 0.618 Fibonacci retracement levels of that move. While this region often attracts buying interest, the structure now leans bearish in the short term due to emerging signals.
One of those signals is the 20 EMA crossing below the 50 EMA on the 4-hour chart. This bearish crossover, often referred to as a death cross, aligns with the recent price breakdown and raises the likelihood of deeper retracement toward the 0.786 fib level near $104,200.
Supporting the near-term bearish view is the 4-hour RSI, which sits in negative territory at 38. However, the daily RSI still holds above the neutral line, indicating that higher timeframe bullish momentum is not yet broken. Unless price breaks below the origin of the 4-hour rally at $102,000, the overall bullish structure holds.
That said, the next 24 hours could see price dip toward $104,000 before broader bullish continuation resumes. While new all-time highs are still on the horizon, the market appears to be recalibrating through a deeper retracement phase first.
Bitcoin failed to break above $108,500 as volume declined to historical lows. Price compressed into a narrow 3.5% range after holding support post-Wednesday drop.
