Bitcoin (BTC) dropped under $104,000 following a 4% slide, as rising macroeconomic pressures and growing retail pessimism weigh heavily on the crypto market.

BTC was last hovering around $103,700, after a turbulent 24-hour period that saw prices dip briefly below $103,400 before managing a modest recovery, according to technical analysis from CoinDesk Research. The market remains uneasy amid persistent geopolitical tensions and uncertainty around global monetary policy.

Data from crypto analytics firm Santiment shows retail investors have turned markedly bearish. In a Thursday post on X, Santiment reported that the ratio of bullish to bearish chatter in crypto discussions has fallen to 1.03 to 1, the lowest reading since early April. That period coincided with former President Donald Trump’s announcement of his “Liberation Day” tariffs, which sent market fear to peak levels.

Interestingly, Santiment views this spike in retail fear as a potential contrarian indicator. In April, Bitcoin rebounded sharply after a similar wave of panic, suggesting large investors might be quietly accumulating while retail sentiment collapses.

Meanwhile, the Federal Reserve’s decision to hold interest rates steady has kept Bitcoin confined within a relatively tight range of $100,000 to $110,000 for the past month. On-chain data shows declining open interest on Binance, signaling continued deleveraging in the derivatives market. Despite the short-term turbulence, whale wallets have steadily accumulated since 2023, hinting at underlying confidence among larger investors.

Technical Analysis Highlights

• BTC-USD traded between $106,552.98 and $102,411.01 over the past 24 hours, marking a 3.89% swing as volatility intensified midday.
• A sharp sell-off between 14:00 and 17:00 UTC pushed Bitcoin below $104,000, establishing resistance around $106,000 on elevated trading volumes.
• Support formed between $103,000 and $103,500, where BTC consolidated during the final hours of trading as volume tapered off.
• A V-shaped recovery emerged late in the session, lifting prices from $103,363 to $103,618, solidifying a local floor near $103,500.
• Short-term momentum indicators pointed to a mild rebound, though follow-through was limited as the session closed near intraday highs.

Despite heightened uncertainty, historical patterns suggest Bitcoin may yet stage a rebound if institutional players continue to buy the dip.