Analyst: BTC risks deeper correction if it breaks below $101K

Bitcoin faces the risk of a further correction if it fails to hold the psychological support level of $101,000, according to a recent analysis. CryptoOnChain, a contributor to the on-chain analytics platform CryptoQuant, explained that BTC recently broke down from its long-held trading range of $107,000 to $123,000, dropping sharply to $98,000 before buying pressure pushed the price back up to the $101,000 area. The analyst noted that this level represents the lower boundary of a long-term ascending channel in place since October 2023, making it a critical juncture for the uptrend. If Bitcoin successfully defends this mark, the recent decline could be considered a short-term correction. However, a failure to hold this level would likely result in the collapse of the ascending channel, ushering in a deeper corrective phase.