With Bitcoin trading near $95,000 after two weeks of falling prices, analysts are wary of a potential massive crash that could send the flagship down to $60,000.
Bitcoin is down more than 2.5% in the past 24 hours, hitting an intraday low of $95,134 yesterday. The price drop extended losses to 3.7% in a fortnight, with the asset’s market capitalization falling to $1.9 billion.
As bulls aim to defend the critical support level at $95,000, on-chain data and market analysts suggest a significantly higher chance that Bitcoin’s price will fall to $60,000 upon Donald Trump’s inauguration on January 19.
Following Bitcoin’s recent decline to nearly $95,000, prominent crypto analyst Ali Martinez, who has over 104.3k followers, noted in a recent after that some savvy investors have already transferred more than 33,000 BTC, worth over $3.23 billion, from their wallets to exchanges in the past week, likely anticipating a bearish scenario.
Such a move typically occurs when investors become cautious and prepare to sell their holdings in anticipation of a possible price drop or increased market volatility.
Further profit-taking by BTC investors also increased sharply on December 23, with Bitcoin holders collectively realizing more than $7.17 billion in profits on the day, the analyst added.
Furthermore, derivatives traders appear less optimistic about Bitcoin’s near-term price prospects. It is striking that the percentage of traders taking long positions in the largest cryptocurrency in the world has fallen from 66.73% to 53.6%.
According to Martinez, the key support level for Bitcoin is between $93,806 and $97,041 and failure to hold this critical demand zone could result in Bitcoin’s price correcting towards $70,085.
Failure to hold $95,000 could lead to a deeper correction
Some other crypto industry experts have similarly warned that a further decline in Bitcoin’s price below the critical support level of $95,000 could cause a significant decline, potentially pushing it down to $60,000.
Market commentator Tone Vays warned that if Bitcoin’s price falls below $95,000, it could signal trouble and pave the way for a sharp correction to around $73,000.
Peter Brandt, a veteran trader who famously predicted the Bitcoin crash in 2018, has done just that concerns expressed that Bitcoin is about to break away from a “widening triangle” – a bearish signal in technical analysis – which could result in a drop to around $70,000.
Meanwhile, Mark Newton, managing director at Fundstrat, and analyst Benjamin Cohen have both expressed concerns that Bitcoin’s price could fall to $60,000 in the near term.
Cohen suggests that Bitcoin’s price could follow a similar pattern to that of other assets, such as the Invesco QQQ Trust, and possibly experience a crash around major political events, such as Donald Trump’s inauguration day on January 19.
The bullish case for Bitcoin
Despite the bearish outlook, some analysts remain optimistic that Bitcoin’s fall may not be as harsh as many speculate.
Georgii Verbitskii, founder of TYMIO, told crypto.news that he does not expect a major downturn for Bitcoin in the near term. In a worst-case scenario, he expects the price to fall only to a low of $89,000, citing increased institutional activity in the market supporting Bitcoin.
“There is usually not much liquidity in the market during the holidays. Today is the biggest expiration of options, so market makers are creating the volatility they need. In the coming days, things are likely to stabilize and then we will witness smooth growth.”
Georgii Verbitskii, founder of TYMIO, told crypto.news.
Pseudonymous trader Titan from Crypto too anticipates a similar decline in Bitcoin’s price to $87,000 during the correction phase, before the next upward move towards $110,000.
Another prominent analyst observed that Bitcoin is currently completing the third Elliott Wave count, which is typically the largest wave. The analyst has set a target of $127,000 for Bitcoin.
In its latest analysis report shared at
While the company acknowledges that this does not guarantee that Whales will deploy their capital immediately, the company concluded: “Consider this a bullish sign as 2024 comes to a close.”
At the time of writing, Bitcoin (BTC) was down 2.1% and trading at $96,464 per coin.
