Bitcoin took a nosedive below $100,000, leaving many wondering what’s in store. Let’s break down the situation according to a crypto analyst’s recent assessment.
Key Price Levels to Watch
Analyst Ali Martinez points out that Bitcoin’s recent price action broke a key technical pattern (a “Head and Shoulders”), initially looking bullish, but quickly reversed. The price plummeted below a significant support zone between $95,000 and $98,000, where a lot of Bitcoin was previously bought. This raises concerns that those holders might now sell to limit their losses.
Martinez warns that if selling pressure intensifies, Bitcoin could fall below $92,000. He calls this a “free fall territory,” meaning a rapid and potentially significant drop with little support until around $74,000.
Rebound or Further Drop?
While things look bearish, Martinez isn’t entirely pessimistic. A technical indicator called the TD sequential suggests a potential price bounce is possible. Binance traders also seem optimistic, anticipating a short-term recovery towards $98,600.
However, a sustained break above
$100,000 is crucial to shift the outlook to bullish. Failure to do so, and a fall below $92,000, could send Bitcoin down to a range between $78,000 and $74,000 – a potential drop of 17% to 21%. As of now, the price is hovering around $94,154, leaving the market in a state of uncertainty./p>
