Key Points
- Bitcoin’s struggle under $100K triggers a pullback, raising concerns about its ability to hold key support levels.
- Experts warn of a potential drop to $70K, but remain optimistic about a long-term rally by 2025.
Bitcoin, currently struggling under the $100K mark, has triggered a significant pullback, causing concerns about its ability to maintain key support levels. The dominance of bearish signals and a surge in liquidation events have led to the price facing critical zones.
Short-term risks suggest a potential drop as low as $70,000. However, some experts maintain a positive outlook for a long-term rally by 2025.
Potential Breakdown to $90K
The failure to reach the $100,000 mark resulted in a 3.71% pullback, creating a bearish engulfing candle and completing a leading share pattern. This undermines the week’s price recovery, with the BTC price continuing in a bearish trend. With an intraday pullback of 1.11%, the BTC market price has decreased to $94,624.
This creates a second consecutive bearish candle and is testing the nearest crucial support level of $94,403. It’s also approaching the 50-day EMA line, priced at $93,170. Amid the increasing bearish influence, the daily RSI line is down under the halfway level and warns of a downtrend continuation.
Expert Predictions and Market Analysis
Despite multiple bouncebacks, the 50-day EMA line remains the final support before the retest of the $90,000 support level. The crypto market in the last 24 hours has lost $251 million in liquidations, with $200 million liquidated from the long-side investors. This indicates a market-wide selling spree, threatening a bearish start to 2025.
A recent tweet by independent analyst Ali Martinez, along with other market analysts, supports the bearish narrative. In a recent video, Tone Vays, a former Wall Street quant trader, warns of cataclysmic conditions if Bitcoin starts to trade below the $95K level. If this happens, it increases the possibility of Bitcoin extending the correction phase to the $73K level.
Technical analyst Peter Brandt has said that Bitcoin is making a broadening triangle pattern in the daily chart, with the support level for this standing at the $90K support level. If the BTC price breaks under this, a possibility of retesting the $70K levels is possible.
Despite these predictions, Thomas Lee holds a positive view on Bitcoin reaching $250K in 2025. However, Chartered Market Technician Mark Newton estimates Bitcoin to take a downswing to $60K before the parabolic rise. Benjamin Coven believes the BTC price is likely to flash crash to $60K near Donald Trump’s inauguration day.
On-Chain Data and Key Levels
The Bitcoin price, based on the on-chain data, suggests $70,000 as a potential drawdown target if BTC starts trading below $93,806. Ali Martinez highlighted a key support zone between $93,806 and $97,041. If this critical demand area doesn’t hold up, the nearest significant support is present near the $70,085 level.
Savvy investors have sent 33,000 BTC to exchanges over the past week, valued at $3.23 billion. Meanwhile, on December 23 alone, $7.17 billion in BTC profits were realized.
Bitcoin faces critical support at $94,403 and the 50-day EMA at $93,170, with a break below potentially leading to a retest of $90K or even $70K. Despite short-term bearish risks, long-term optimism persists with projections of a rise to $250K by 2025. Traders should watch key levels closely to navigate the current uncertainty.
