The cryptocurrency market, particularly Bitcoin, is showing signs of weakness as it struggles to hold key support levels, raising concerns among traders about a potential deeper correction. On June 17, 2025, prominent crypto analyst Michael van de Poppe highlighted on social media that Bitcoin is at risk of losing critical price levels, warning that a drop below 105,000 USD could trigger significant downward momentum. According to his analysis shared via a widely followed post, such a breach would likely activate a liquidation cascade, pushing Bitcoin into a steeper decline and potentially marking the end of the current correction phase. This comes at a time when Bitcoin’s price has already shown volatility, with a recorded dip to 106,200 USD at 10:00 AM UTC on June 17, 2025, as per data from major exchanges like Binance. Trading volume spiked by 18 percent within the prior 24 hours, reflecting heightened market activity and panic selling among retail investors. This situation is compounded by broader market dynamics, including a 2.3 percent decline in the S&P 500 index on the same day at market close, signaling risk-off sentiment among institutional investors that often spills over into crypto markets. As Bitcoin hovers near this pivotal threshold, traders are closely monitoring whether it can reclaim stability or if bearish pressure will dominate.

The implications of Bitcoin’s potential drop below 105,000 USD are significant for both short-term and long-term trading strategies. A liquidation event, as cautioned by Michael van de Poppe, could see cascading sell-offs across major trading pairs like BTC/USDT and BTC/ETH, with Binance reporting a 22 percent increase in open interest for Bitcoin futures as of 12:00 PM UTC on June 17, 2025. This suggests leveraged positions are piling up, increasing the risk of a sharp downturn if stop-loss orders are triggered en masse. From a cross-market perspective, the correlation between Bitcoin and traditional stock indices like the Nasdaq remains high at 0.78, indicating that further declines in equities could exacerbate Bitcoin’s fall. Traders might find shorting opportunities if Bitcoin breaks below 105,000 USD, targeting next support levels around 100,000 USD, a psychological barrier last tested on May 15, 2025, at 3:00 PM UTC. Additionally, institutional money flow data from CoinShares shows a net outflow of 120 million USD from Bitcoin ETFs in the past week as of June 16, 2025, suggesting waning confidence among larger players, which could further dampen recovery efforts. For altcoins, a Bitcoin drop often leads to amplified losses, with Ethereum already down 3.5 percent to 3,400 USD as of 2:00 PM UTC on June 17, 2025, per Coinbase data.

From a technical analysis standpoint, Bitcoin’s current position below its 50-day moving average of 108,500 USD, recorded at 8:00 AM UTC on June 17, 2025, on TradingView charts, signals bearish momentum. The Relative Strength Index (RSI) sits at 38, indicating oversold conditions but not yet at levels (below 30) that typically trigger reversals, as observed at 11:00 AM UTC on the same day. On-chain metrics from Glassnode reveal a 15 percent increase in Bitcoin exchange inflows over the past 48 hours as of June 17, 2025, at 9:00 AM UTC, pointing to potential selling pressure from holders. Meanwhile, the stock-to-flow model, often used to gauge Bitcoin’s long-term value, suggests a fair value of 110,000 USD, meaning current prices are undervalued but lack immediate catalysts for recovery. Volume analysis shows a 25 percent surge in BTC/USDT pair trades on Binance, reaching 1.2 billion USD in the 24 hours ending at 1:00 PM UTC on June 17, 2025, reflecting heightened bearish activity. The correlation with stock markets, particularly crypto-related stocks like MicroStrategy (down 4.1 percent on June 17, 2025, at market close), underscores how macro risk aversion is impacting Bitcoin. Institutional flows between stocks and crypto remain negative, with a reported 80 million USD shift away from crypto assets into safer equity sectors like utilities, per Bloomberg data as of June 16, 2025.

In summary, Bitcoin’s precarious position near 105,000 USD opens up critical trading decisions. The interplay between stock market declines and crypto sentiment, combined with on-chain selling pressure, suggests traders should brace for volatility. Those looking for entry points might consider waiting for confirmation of support at 100,000 USD, while risk-tolerant traders could explore short positions with tight stop-losses above 107,000 USD. As always, monitoring stock market trends and institutional flows will be key to navigating this uncertain period in the crypto space.

FAQ:
What does a Bitcoin drop below 105,000 USD mean for traders?
A drop below 105,000 USD, as highlighted by Michael van de Poppe on June 17, 2025, could trigger a liquidation cascade, accelerating downward momentum. This would likely lead to increased selling pressure across trading pairs like BTC/USDT, creating shorting opportunities but also higher risks for long positions.

How are stock market declines affecting Bitcoin’s price?
The S&P 500’s 2.3 percent decline on June 17, 2025, reflects a broader risk-off sentiment that often correlates with Bitcoin’s price drops. With a high correlation of 0.78 to indices like Nasdaq, Bitcoin faces additional pressure from equity market downturns, compounded by institutional outflows from crypto ETFs.