What to expect when the Bitcoin price drops below $100,000

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This article is also available in Spanish.

Due to recent events, the cryptocurrency market is facing renewed volatility and uncertainty Bitcoin price collapse below the $100,000 threshold. As a result, the cryptocurrency analyst does common quite a long post on X (previously on Twitter) describing what to expect from such a significant drop. Warns of critical levels that should be monitored selling pressure intensifiesnoting that both macro and technical indicators paint a mixed picture of Bitcoin’s near-term price trajectory.

Key Levels to Watch After Bitcoin Price Crash

According to prominent crypto analyst Ali Martinez, Bitcoin’s price has fallen below $100,000 again after crossing that milestone earlier this week. Martinez revealed that the previous day Bitcoin had broken the right arm of a Head and shoulders patterncompletely invalidating the bearish setup at the time. However, in just 24 hours, the cryptocurrency erased these significant gains, pushing its price back below the right shoulder of the technical pattern and are reigniting bearish sentiment.

Source: X

With his mass fall below $100,000Bitcoin has now fallen well below the key demand zone between $95,000 and $98,000, an area where approximately 1.77 million live wallet addresses purchased over 1.53 million BTC worth over 141.3 billion at the current market rate.

While many investors typically buy and hold BTC for profit, the recent decline in Bitcoin prices has raised concerns that owners of 1.77 million wallet addresses may be forced to they sell their shares to limit potential losses. Martinez warns that increasing selling pressure could push the Bitcoin price below $92,000, potentially causing an even sharper and faster decline, with constrained support until the $74,000 level is reached. It’s worth noting that the analyst calls a drop below $92,000 “free fall territory,” meaning Bitcoin could continue to fall as Panic selling is increasing and the fluidity dries up.

Bitcoin price 2
Source: X

Adding to the ongoing uncertainty, Bitcoin’s price reversal below the right shoulder of the Head and Shoulders pattern, combined with the current bearish market conditions, has once again raised concerns, leaving many investors preparing for deeper price crash.

Reflection on the horizon or even greater pain ahead?

Despite Bitcoin’s current bearish outlook, Martinez assures members of the crypto community that a price rebound is possible. The analyst revealed that Bitcoin’s sequential TD indicator recently flashed a buy signal on the 4-hour chart, suggesting that potential price rebound and recovery may be in progress.

Bitcoin price 3
Source: X

Interestingly, Binance Traders will remain bullish on Bitcoin, and this bullish sentiment points to a short-term recovery towards $98,600, a price level with a $35 million liquidation zone that market makers covet. Martinez emphasizes that there has been a sustained breakout above $100,000 sign is crucial to invalidating Bitcoin’s current bearish outlook and setting the stage for this situation fresh all-time highs.

Bitcoin price 4
Source: X

However, if Bitcoin fails to regain this psychological level and falls below $92,000, it is at risk of falling further, potentially correcting towards fresh lows in the $78,000 to $74,000 range. At the time of writing, Bitcoin is trading at $94,154, which means a drop in this range would represent a massive drop of 17.16% to 21.41%.

Bitcoin price chart from Tradingview.com
BTC price continues to fall | Source: BTCUSD on Tradingview.com

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

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