Bitcoin’s price recently reached a monumental milestone, crossing the $100,000 mark for the first time in its history. While the breakthrough is a significant achievement for the BTC price, it also raises a question where does this come from.

The consensus among many analysts is that Bitcoin’s upward price action will continue. However, a cryptocurrency analyst at TradingView issued a stern warning, labeling this price level as a “danger zone.” According to their technical forecasts, reaching $100,000 could result in a massive correction in Bitcoin’s price all the way to the $72,000 price level.

Why $100,000 could be a turning point for Bitcoin’s price

After four failed attempts to break the $100,000 barrier, Bitcoin has finally crossed the psychological threshold and this is what happened now open to uncharted pricing territory. Although the price of Bitcoin dropped below $100,000 in a matter of hours, many investors remain hopeful, viewing this pullback as a transient setback and believing that Bitcoin’s journey above $100,000 is not over yet.

Optimism, however, is met with a contrasting perspective from analysis TradingView platform, which offers a more cautious and bearish outlook. The analyst highlights the $100,000 level as a “magnet” that has consistently attracted price activity over the past few weeks, serving as a critical zone of attraction and resistance. With this in mind, the analyst is predicting bearish price action, essentially predicting a retest of $94,000. Therefore, the analyst expects a market structure break (MSB) to occur, which in turn would result in a broader BTC price correction.

Interestingly, the analyst predicted breaking below $94,000 price level would result in a retest of $88,000. If Bitcoin falls below the support at $88,000, the analyst predicts further price declines that will push Bitcoin’s price towards the ideal target zone of just above $72,200.

Bullish sentiment prevails over bearish sentiment

If the analyst’s bearish scenario comes true, it could plunge the cryptocurrency market into another bear market, with other cryptocurrencies mirroring Bitcoin’s downward trajectory and erasing recent price gains.

However, this is more of a prediction than a prediction assessment of the current dynamics of the cryptocurrency market. Currently, the cryptocurrency market continues to bask in bullish sentiment, as evidenced by the Fear and Greed Index, which is currently at an extreme greed level of 81. Several analysts have suggested that Bitcoin’s price may still have room to grow, with some predicting potential highs near $140,000.

At the time of writing, Bitcoin is trading at $98,350. Interestingly, the recent break above $100,000 led to a retest of $94,000 in the last 24 hours. However, Bitcoin price bounced from $94,000 instead of breaking below. Despite this rebound, the leading cryptocurrency may not be out of the woods yet.

Featured image created with Dall.E, chart from Tradingview.com