Bitcoin Faces Potential Drop to $70,000, Analysts Warn
The recent rejection at $100,000 has led financial analysts to warn that Bitcoin may experience a significant pullback toward $70,000 or even $60,000. Crypto analyst Ali Martinez compiled insights from several market experts on X regarding the potential for an impending correction.
Bitcoin Price Crash Incoming?
Tone Vays, a notable trader, expressed concerns about Bitcoin's position below $95,000, stating it increases the likelihood of a drop to approximately $73,000. He noted that trading near the $92,000 range opens the possibility for a substantial decline.
Peter Brandt discussed a "broadening triangle" pattern in Bitcoin’s price chart, suggesting a potential retracement toward the $70,000 area. Brandt clarified that he is highlighting possibilities rather than making definitive predictions.
Contrasting these bearish views, Fundstrat predicts Bitcoin could reach $250,000 by 2025. Mark Newton, their Global Head of Technical Strategy, acknowledged possible short-term volatility, indicating Bitcoin might dip to $60,000 before rising.
Fundstrat CEO Tom Lee mentioned in a video that while Bitcoin may reach around $250,000 within a year, it is subject to high volatility, with expectations of a decline to the $60,000s early next year.
Benjamin Cowen of Into The Cryptoverse suggested Bitcoin's price actions could resemble those of the Nasdaq 100 (QQQ), potentially leading to a "flash crash" to $60,000 coinciding with Donald Trump’s inauguration day.
On-chain analysis by Martinez indicates bearish scenarios. He stated if Bitcoin falls below $93,806, the path to $70,085 becomes more likely. He identified critical support between $97,041 and $93,806, warning that failure to maintain these levels could lead to a sharp decline.
Martinez observed market dynamics showing investor preparations for a downturn, including over 33,000 BTC (valued at more than $3.23 billion) transferred to exchanges recently. Additionally, profit-taking is evident, with over $7.17 billion in Bitcoin profits realized on December 23. The percentage of Binance traders with open long positions on BTC decreased from 66.73% to 53.60%, indicating a shift towards bearish sentiment.
Martinez emphasized the need for Bitcoin to reclaim the $97,300 support level to counter bearish forecasts. He stated that for the outlook to change, BTC must close above $100,000 daily.
If Bitcoin sustains a daily close above $100,000, Martinez suggests it could potentially rise to $168,500 based on the Mayer Multiple. Failure to do so may allow anticipated corrections to occur.
At press time, BTC traded at $96,905.
