Following the recent drop in Bitcoin prices below $100,000, the cryptocurrency market is experiencing increased volatility and uncertainty. A crypto analyst has shared insights on what to expect next as selling pressures intensify, cautioning against critical levels to monitor as both macro and technical indicators show a mixed outlook for Bitcoin’s short-term price direction.
Important Levels to Monitor Post Bitcoin Price Decline
The Bitcoin price has once again dipped below $100,000 after hitting this milestone earlier. A prominent analyst, Ali Martinez, pointed out that Bitcoin breached the right shoulder of a Head and Shoulder pattern, erasing gains made within 24 hours and sparking renewed bearish sentiment. This downward movement has pushed the cryptocurrency below the key demand zone between $95,000 and $98,000, affecting a significant number of wallet addresses holding substantial amounts of BTC.
The recent crash has raised concerns about potential selling pressure from holders of these BTC addresses, with fears that a drop below $92,000 could lead to further declines towards $74,000. Martinez warned of a possible free fall territory if Bitcoin fails to hold above $92,000, signaling panic selling and reduced liquidity in the market.
Amidst the uncertainty, concerns about a deeper price crash persist as Bitcoin faces bearish market conditions. However, Martinez suggests a potential rebound may be on the horizon, with indicators signaling a buy opportunity on the 4-hour chart, indicating a possible price recovery.
Possible Rebound or Further Decline?
Binance traders maintain a bullish outlook on Bitcoin, anticipating a short-term recovery towards $98,600, a level with significant market maker interest. Martinez emphasizes the importance of surpassing the $100,000 mark to counter the current bearish trend and pave the way for new all-time highs.
If Bitcoin fails to reclaim $100,000 and drops below $92,000, it risks further downside towards new lows between $78,000 and $74,000. Currently trading at $94,154, a move to these lower levels could result in a significant decline of 17.16% to 21.41%.
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