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As Bitcoin (BTC) hovers around $92,000 and the critical $100,000 resistance level, the cryptocurrency market is rife with speculation about its next movements. Prominent crypto analyst Ali Martinez recently outlined potential scenarios for BTC’s future, suggesting that a steep correction may be on the horizon.
Crypto Experts Signal Concerns
In recent social media posts highlighted by Martinez, several well-known analysts have indicated that Bitcoin could experience a significant drop. Martinez noted a bearish sentiment within the market, citing that Bitcoin may crash to as low as $60,000.
Tone Vays, a respected figure in the crypto space, warned that trading below $95,000 is “very, very bad,” as it heightens the probability of a correction toward $73,000. Similarly, Peter Brandt pointed to a potential breakdown of a “broadening triangle,” projecting a retracement toward the $70,000 range.
Adding to the bearish outlook, Mark Newton of Fundstrat suggested that while Bitcoin could eventually reach $250,000 by 2025, a downswing to $60,000 is likely in the near term.
Meanwhile, another analyst, known as Intocryptoverse, speculated that Bitcoin might mirror the price action of the QQQ index offered by Invesco, with a flash crash potentially coinciding with President-elect Donald Trump’s inauguration day on January 20.
From an on-chain perspective, the analysis indicates that if Bitcoin falls below $93,806, it could face open air down to $70,085, reinforcing the likelihood of a correction.
Notably, savvy investors seem to be preparing for a bearish scenario; over the past week, more than 33,000 Bitcoin, valued at approximately $3.23 billion, were transferred to exchanges. Additionally, on December 23 alone, over $7.17 billion in profits were realized by traders.
Bitcoin Must Reclaim $100,000 To Avoid Bearish Outlook
Recent data from Binance further shows a notable shift in trader sentiment, with the percentage of traders holding long positions in Bitcoin dropping from 66.73% to 53.60%. This decline reflects a growing caution among investors as Bitcoin recently broke below a significant support zone at $97,300.
For the bearish outlook to be invalidated, Martinez asserts that BTC must reclaim this critical support area and close above $100,000 on a daily basis. If it can achieve and maintain this level, he believes the cryptocurrency could embark on a new upward trajectory, potentially reaching as high as $168,500.
Despite the prevailing bearish sentiment, Martinez also presented a more bullish scenario. He suggested that a correction of 20% to 30% could actually set the stage for a stronger recovery.
According to his analysis, a 30% drop would see BTC plummet to approximately $65,000 for current trading prices, a level not witnessed since October. This correction could serve to reset market sentiment and provide a foundation for future growth.
At the time of writing, the market’s leading crypto trades at $94,560, posting losses of 2% and 3% on the 24-hour and weekly time frames, respectively.
Featured image from DALL-E, chart from TradingView.com
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