Bitcoin (BTC) lost its grip on the $104,000 mark for the first time in weeks on Tuesday, sparking fears of deeper correction levels as traders braced for a potential retest of the psychological $100,000 zone or even a slide toward $92,000.

The world’s largest cryptocurrency fell more than 2% during early Asia trading hours, hitting lows of $103,732 on Bitstamp, according to data from Cointelegraph Markets Pro and TradingView.

Bitcoin Price in ‘Freefall’ Below $104K

The sharp downturn prompted renewed caution among traders, who warned that Bitcoin could soon test new multi-week lows.

Crypto investor and entrepreneur Ted Pillows captured the market mood on X (formerly Twitter), writing:

“$BTC is in absolute free fall right now. There’s no strong support until the $100,000 level, which means it’ll most likely get retested.”

Market data from CME Group’s Bitcoin Futures added to the bearish outlook, showing an unfilled weekend gap hovering near $92,000, just below Bitcoin’s 2025 yearly open.

Pillows suggested that if the $100,000 level fails, BTC could quickly correct to close that gap, a move that would also align with a more pronounced technical retracement.

Traders See Weak Technical Structure Forming

Well-known trader Daan Crypto Trades noted that Bitcoin had already broken its “main support” that had been holding for weeks.

“Now nearing the bottom of the range where price made its initial higher low after the bounce post 10/10 liquidation event,”

he explained, referencing the Oct. 10 market crash that rattled crypto valuations.

Daan highlighted three major headwinds weighing on Bitcoin’s short-term performance:

• Massive whale selling activity

• A slowdown in U.S. equities

• Renewed U.S. dollar strength

“All in all, not a great recipe for the time being,” he concluded.

Derivatives trader Ardi echoed the sentiment, pointing to the unfilled candle wick from Oct. 10 around $102,000 on Binance, which aligns with Bitcoin’s 50-week Exponential Moving Average (EMA), a crucial technical level that hasn’t been tested in seven months.

Short-Term Holders Face Growing Unrealized Losses

The renewed downside pressure is weighing heavily on new Bitcoin buyers, who now sit on mounting unrealized losses.

Data from on-chain analytics firm Glassnode revealed that the Net Unrealized Profit/Loss (NUPL) indicator for short-term holders (STHs), entities holding BTC for up to 155 days, has dipped back into “capitulation” territory.

At press time, the STH-NUPL measured -0.058, approaching its lowest level since April.

Glassnode analysts commented on X:

“Historically, such periods of STH stress and capitulation have marked attractive accumulation opportunities for patient investors.”

In past cycles, similar capitulation signals have coincided with midterm buying zones, suggesting that while short-term sentiment remains fragile, long-term players could soon see renewed opportunity.

Macro Sentiment Adds Fuel to the Pullback

Beyond Bitcoin’s technical setup, broader macroeconomic trends continue to add selling pressure.

U.S. Treasury yields remain elevated, and traders are increasingly pricing in a “higher-for-longer” interest rate environment, dampening appetite for risk assets like Bitcoin.

Meanwhile, whale wallets have shown a steady increase in exchange inflows, hinting at potential distribution phases among large holders.

If this pattern persists, analysts warn, the probability of Bitcoin filling the CME futures gap at $92,000 grows stronger.

What Comes Next for Bitcoin

While bearish sentiment dominates in the short term, historical data suggests these pullbacks can often precede strong rebounds, particularly when short-term holders capitulate en masse.

The $92,000–$100,000 zone could therefore serve as a critical accumulation range if long-term investor confidence remains intact.

Still, with traders eyeing macro uncertainty, rising dollar strength, and technical gaps yet to be filled, the road back to all-time highs may take longer than bulls hope.

“Until $100K holds decisively, caution remains the dominant trade,” summarized one analyst in a Cointelegraph Markets Pro briefing.