Bitcoin (BTC) has dipped by 6% over the last 24 hours to trade at $104,586. The recent price slump extends the recent correction with the price dipping by over 14% over the last 7 days. 

This decline comes as Bitcoin faces correction amid sentiment cool off following previous sustained bullishness for risk-off assets. However, despite the retracement long-term investors eye stabilization at key support zones. 

Bitcoin Price Performance; Will $104,000 Support Hold? 

While long-term investors remain optimistic, Bitcoin seems primed for a move towards key support zones before a potential recovery. The bearish Moving Average Convergence Divergence (MACD) crossover on the 4-hour chart amplifies the probability of a corrective phase, especially on the short-term. 

In case of continued decline, BTC risks breaching key support levels and could reach down to $100K which has previously acted as key inflection zone. According to crypto analyst Ted Pillows, there is a key demand zone at $104,000 and $100,000 on Binance. Bulls may thus try to defend these levels to prevent further slump. 

“$BTC has decent bids around the $100,000-$104,000 level on Binance. I think bulls will try to defend this level for Bitcoin,” Ted Pillows highlighted. 

While BTC may fail to hold $104,000, it could face stronger support at $100,000. A revisit of this zone could fill out last week’s wick and potentially trigger an upward price movement. 

Crypto Liquidations Surge top $1.18B

Amid the Bitcoin price slump, the general crypto market is feeling the heat again just 7 days after the $19.3 billion liquidation across the market on October 10. On the day, liquidation data by Coinglass shows that a total of $1.18 billion has been liquidated from the market over the last 24 hours as the market dipped. 

The number of traders liquidated sits at 300,651 traders. Among them, the largest liquidation happened on Hyperliquid with one trader losing $20.42 million on a ETH/USD trade. 

Bitcoin traders have faced the most heat with $331.56 million longs and $99.92 million shorts liquidated, bringing the total BTC liquidations to $431.48 million, over the last 24 hours. 

In tandem, Ethereum has also recorded a total of $263.31 million in liquidations over the last 24 hours. Same as the case for BTC, the most ETH liquidations came from long bets.

What’s Next for BTC?; BOB Co-Founder Highlights a Catch

Despite the recent correction, Co-founder of BOB (the Gateway to Bitcoin DeFi), Dom Harz, believes that the recent dip is just a mere distraction from Bitcoin’s true trajectory, which is strongly backed by Bitcoin DeFi. In an exclusive commentary shared with Blockchain News, Harz emphasized that BTC DeFi TVL has remained steady, hence long-term investors have nothing to worry about. 

“Despite this week’s liquidations and price fluctuations, Bitcoin DeFi’s TVL has remained relatively steady. This highlights that there is a strong conviction in Bitcoin as a utility asset, not just a store of value. It’s important not to let these short-term movements distract from Bitcoin’s, and indeed Bitcoin DeFi’s, true trajectory,” he said. 

He further emphasized that the cryptocurrency is maturing and will move more in tandem with other financial assets as it gains mainstream adoption. This will eventually trigger a surge in Bitcoin DeFi innovation, bolstering BTC’s utility and potentially the price. 

“We are likely to see Bitcoin move more in tandem with other financial markets as it moves closer to becoming a core component of the global financial system. This momentum will also drive technological developments in Bitcoin DeFi, and these institutions holding BTC will want to unlock Bitcoin’s utility and put their assets to work by securely deploying BTC natively into DeFi protocols,” Harz added. 

So, while Bitcoin is dropping at the moment, crypto analysts and market experts suggest that there is nothing to worry about, in the long-term. The recent dip is just a short-term correction and BTC could rally upon inflection at key support levels. Market participants must keep an eye on the market to determine BTC’s price action moving into the weekend.