If Bitcoin fails to hold its key resistance levels, its price may plummet. A cryptocurrency analyst revealed that falling to $89,000 is entirely possible, as the sell-off below the $100,000 mark continues to hinder Bitcoin's upward momentum.
The Bitcoin price may pull back to $89,000
On November 26, TradingView cryptocurrency analyst Pejman Zwin shared a detailed chart representing the technical analysis of Bitcoin's price movement over a 1-hour time frame. The Bitcoin price chart highlights important resistance lines, support areas, and technical indicators suggesting an imminent crash.
There is a yellow area at the top of the price chart marked as a Potential Reversal Zone (PRZ), where Bitcoin is expected to face significant resistance when reaching the $100,000 milestone. The chart also highlights a resistance line around $95,904, which Bitcoin has previously struggled to break through.
Current resistance levels are between $97,000 and $98,000, and Zwin indicated that if Bitcoin can successfully break through these thresholds, its price could rise significantly to $100,000.
On the other hand, if Bitcoin fails to reach the aforementioned resistance levels, it may experience a significant price drop. The analyst's price chart shows a green area representing a key support cone, suggesting that if the price retracts, Bitcoin may bounce back.
If Bitcoin falls below the support level between $95,600 and $92,000 and breaks through the lower line of the rising channel on the chart, Zwin predicts that its price may drop to $89,000 in this bull market. The analyst describes this crash point as 'liquidation of accumulated long leverage, with Bitcoin's price potentially retracting between $91,000 and $89,000, indicating that the leading cryptocurrency could fall by 8% to 10%.
Key factors driving the rise in Bitcoin prices
On the other hand, Zwin revealed in its Bitcoin analysis report that the cryptocurrency is rising again, thanks to a wave of positive market sentiment triggered by recent news developments in the crypto space. The analyst disclosed that the news confirming the legality of Bitcoin and cryptocurrency ownership by Chinese courts was a key catalyst for the significant rise in BTC prices.
Furthermore, Donald Trump’s plan to appoint a White House crypto advisor has greatly boosted Bitcoin prices, pushing them to current levels and allowing it to break through important resistance lines.
According to the above chart, Zwin revealed that based on Elliott Wave Theory, Bitcoin has entered five new impulsive waves. This bullish development occurred after the cryptocurrency broke through key resistance lines.
Additionally, Zwin's Bitcoin price chart shows a 'rising and rising top pattern', indicating that the cryptocurrency has completed the 'rising phase' and entered the 'upward phase'. Given this, analysts predict that if Bitcoin can soar above $98,700, investors and market observers should expect it to surge to $100,000.
