Bitcoin took a bit of a dive recently, dropping almost 5% in just two days. This happened right after some serious international tension flared up. The price briefly dipped below $100,000 before recovering slightly. But according to one analyst, Bitcoin needs to stay above a certain price to avoid a much bigger drop.
Holding the $100,000 Line
Analyst Ali Martinez points out that Bitcoin has been trading within a pretty specific range ($78,500 to $110,000) for the past six months. It’s bounced off the bottom of that range a few times and tested the top several times.
The key, says Martinez, is the $100,000 level. If Bitcoin closes below that, there’s a strong chance it could fall all the way down to $78,500 – a 25% drop!
Bullish or Bearish?
However, it’s not all doom and gloom. Staying above $100,000 keeps the positive momentum going and increases the chances of Bitcoin hitting $110,000, maybe even breaking out of its current trading range entirely.
Even if it does dip below $100,000, it doesn’t automatically mean a crash to $78,500. There are other support levels at $92,000 and $86,000 that could help slow the fall.
Bitcoin’s Current Status
At the moment, Bitcoin is trading around $105,194, down slightly from the previous day. Interestingly, trading volume is actually up, suggesting increased activity in the market. Bitcoin remains the top cryptocurrency, holding a massive market share.
