The cryptocurrency market experienced a notable shift in the early days of the New Year as Bitcoin (BTC) faced a significant price retrace. After recently reclaiming the $100,000 support level, Bitcoin’s value fell into the $94,000 range. This volatility prompted market analysts to share their cautiously optimistic outlooks on the cryptocurrency’s future.
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Bitcoin Risks Crash To $74,000
On a recent Tuesday, Bitcoin’s price dipped below $97,000, marking the first significant market pullback of the year. At the start of 2025, Bitcoin was trading around the $92,000 mark, but it quickly gained approximately 6.5% in the subsequent days. The cryptocurrency managed to flip the $98,000 resistance level into a promising support zone over the weekend, briefly surging back above $100,000 to reach its highest price in weeks. However, maintaining this crucial support proved challenging, as BTC experienced a 3% decline within an hour.
Continuing its downward trajectory, Bitcoin dropped an additional 2.5% over the past day, reaching as low as $94,500 on Wednesday morning. Since then, it has fluctuated between $94,800 and $95,600, with a brief attempt to test the $96,000 resistance level.
Cryptocurrency analyst Ali Martinez provided insights into Bitcoin’s recent performance. In a detailed thread, Martinez highlighted that Bitcoin had “breached the right shoulder of a head-and-shoulders pattern,” which invalidated a previously bearish setup. Despite this, the reversal erased earlier gains, causing Bitcoin to dip below the right shoulder again and reigniting bearish concerns. This pattern suggests a potential correction that could see Bitcoin’s price decline to at least $78,000.
Martinez further noted that Bitcoin has fallen below a key demand zone, ranging from $95,400 to $98,400, where 1.77 million addresses had accumulated over 1.53 million BTC. This decline could pressure holders to sell some of their Bitcoin to mitigate potential losses. Martinez warned that a lack of significant resistance ahead, apart from a minor supply wall of 107,000 BTC between $104,700 and $105,770, could make the market vulnerable. A surge in selling pressure pushing Bitcoin below the $92,000 threshold might trigger a more dramatic drop, with limited support until the $74,000 level.
He expressed that current market conditions, from a macroeconomic perspective, are stirring fears of an impending Bitcoin crash.
BTC Price Set To Bounce Soon?
Despite the bearish indicators, Martinez shared a cautiously bullish outlook for Bitcoin, emphasizing a potential price rebound from a technical perspective. He pointed out that the TD Sequential indicator on Bitcoin’s 4-hour chart signaled a buy, suggesting a possible bounce if Bitcoin can maintain the $93,500 support level.
Moreover, Martinez observed that traders on the Binance exchange appeared optimistic about Bitcoin’s future, with 61.28% of traders holding open positions suggesting a price increase. He highlighted that a price rebound to $98,600 could result in $35 million worth of liquidations, indicating market makers might attempt to reach this level. Similarly, another liquidation zone worth $66 million exists above $103,300.
However, Martinez stressed the importance of Bitcoin reclaiming the $100,000 support level to negate the bearish outlook and aim for new all-time highs. While a short-term rebound to $98,600 is possible, the broader market perspective advises caution.
As of this writing, Bitcoin is trading at approximately $94,500, reflecting a 3.3% retracement on the daily timeframe.
