Amid a general collapse in the cryptocurrency market, liquidations surged to over $1 billion, with Bitcoin prices falling all the way to the $95,000 level. Altcoins such as ETH, SOL, and DOGE saw even greater selling pressure, with corrections of 8-13%. While Bitcoin pullbacks are part of every market cycle, investors are curious about how long BTC's pullback will last.
Will the Crypto Market Crash Cause BTC Price to Fall Further?
BTC poised for 25% drop to $80,000
As panic selling intensifies further, the cryptocurrency market continues to collapse, and the price of Bitcoin has fallen further from the key support level of $100,000. Cryptocurrency market analysts predict that there is a high probability that Bitcoin will fall 25% from its historical high of $108,000. Rekt Capital, a well-known cryptocurrency analyst, pointed out:
"For those who believe that a 25% or 30% retracement will definitely not occur in this cycle, they should study the overall 34% retracement from March to August this year more closely. Or the multiple 25% retracements between March and August."
Therefore, if history repeats itself, BTC price may once again retrace all the way to $80,000. Cryptocurrency analyst Rekt Capital warned that Bitcoin might face a pullback, citing the persistent bearish engulfing candle on the weekly chart. In a recent article, this analyst stressed that the key weekly support level of $1.012 million is under pressure and hard to maintain.
Analysts further pointed out that if this key blue support area fails, combined with Bitcoin's 5-week uptrend (marked in orange), the cryptocurrency may enter a broader correction phase.
The critical support level for Bitcoin during the cryptocurrency market crash is worth monitoring.
At the time of publication, Bitcoin price has dropped by 4.2% to $96,828, with a market capitalization of $1.92 trillion. Analyst Ali Martinez pointed out that Bitcoin's key support range is between $98,830 and $95,830. Within this range, about 1.09 million wallets have purchased over 1.16 million BTC, further demonstrating its importance as a key price level.
Coinglass data shows that Bitcoin open contracts have decreased by 5%, while the 24-hour liquidation amount surged to $217 million, with $166 million being long liquidation. Despite the current decline, the Bitcoin fear and greed index remains in the "greed" zone, scoring 74.
Market analysts believe that the adjustment in the cryptocurrency market may continue further in the context of the soaring US dollar index (DXY). Cryptocurrency analyst Justin Bennett emphasized the importance of tracking global liquidity trends, stating: "Since rebounding from 102.60, 110.00 has been my dollar target, and I bet this area marks the bottom of the cryptocurrency market in early 2025."
Altcoins ETH, SOL, and DOGE face stronger corrections.
ETH loses the key support level of $3,500.
In the context of the recent market downturn, trading for top altcoins has also performed poorly. ETH price has significantly retraced by 9% in the past 24 hours, losing the key support level of $3,550, and is currently trading at $3,346. Ethereum may test $3,000 again before rebounding.
Moreover, the selling behavior of Ethereum whales has recently intensified. Blockchain analysis platform LookonChain reported that the recent drop in Ethereum prices has prompted large holders to actively sell ETH to repay debts.
In the past five hours, a whale transferred 22,746 ETH, worth $77.7 million, to Binance, then withdrew stablecoins to repay debts to Spark and Aave.
Another whale deposited 49,910 ETH, worth $170 million, to Binance and withdrew stablecoins worth $137.8 million in the past 8 hours.
However, market analysts remain hopeful for the future. Noted analyst Ted Pillows wrote:
"$4,000 seems to be the new $1,400 for Ethereum. During the 2020-21 cycle, ETH was repeatedly rejected at the $1,400 level before finally breaking through. Currently, the same situation is happening at the $4,000 level, but a breakthrough will occur soon."
Solana price breaks below $200.
Following a peak of $263 in November, Solana's price has been consolidating, underperforming other similar altcoins. In today's cryptocurrency market crash, SOL price lost the key support level of $200, and as of the time of publication, it is currently trading at $193.
Cryptocurrency analyst Lieutenant Ponzi draws attention to the weekly chart of Solana (SOL), highlighting significant order blocks (OB) and a bullish bat pattern. According to this analyst, the $165-$170 range is becoming a key focus area, indicating potential resistance or reversal zones for the cryptocurrency.
The cryptocurrency market crash led to a 13.5% drop in DOGE price.
At the time of publication, Dogecoin's price has significantly retraced by 13.5%, rising to $0.31. Thus, the weekly decline of the world's largest meme coin has expanded to over 22%. Coinglass's 24-hour liquidation data shows that open contracts have decreased by 20%, with Dogecoin liquidation amounting to $55 million, of which $44 million is long liquidation.
Nevertheless, market analysts remain optimistic about DOGE. Market analyst BALO emphasized key price levels for Dogecoin (DOGE) weekly performance.
Analysts state that the weekly closing price must be above $0.26 to maintain bullish momentum. Additionally, if DOGE can reclaim the $0.42 level, BALO predicts it could soar to $4, indicating significant upside potential for this popular meme token.
