Bitcoin's price could collapse if it fails to hold the important resistance level. A cryptocurrency analyst has revealed that the possibility of dropping to $89,000 is entirely plausible, as the sell-off below $100,000 has continued to hinder Bitcoin's bullish momentum.
Bitcoin's price could adjust down to $89,000.
On November 26, TradingView's cryptocurrency analyst Pejman Zwin shared a detailed chart showing technical analysis of Bitcoin's price volatility on the 1-hour timeframe. The Bitcoin price chart highlights key resistance lines, support zones, and technical indicators suggesting an impending collapse.
At the top of the price chart is the yellow area identified as the Potential Reversal Zone (PRZ), where Bitcoin is expected to face significant resistance as it approaches the $100,000 milestone. The chart also highlights the horizontal resistance line around $95,904, which Bitcoin has previously struggled to break through.
At the current resistance level from $97,000 to $98,000, Zwin has indicated that if Bitcoin can successfully break through this threshold, its price could significantly rise to $100,000.
On the other hand, Bitcoin could experience a major price drop if it does not achieve the aforementioned resistance level. The analyst's price chart shows green areas representing key support cones, where Bitcoin could recover if its price adjusts.
If Bitcoin drops below the support level between $95,600 and $92,000 and breaks the lower line of its upward channel on its chart, Zwin has predicted that its price could fall to a low of $89,000 in this bullish cycle. The analyst describes this collapse point as "long-term liquidation leverage accumulation, where Bitcoin could see its price adjust between $91,000 and $89,000, representing a drop of 8% to 10% for the pioneering cryptocurrency."
Key factors pushing BTC prices higher.
On the other hand, Zwin reveals in his Bitcoin analysis report that the cryptocurrency is rising again, driven by a wave of positive market sentiment due to recent developments in the cryptocurrency space that have made headlines. The analyst discloses that news from the Chinese Court affirming the legality of Bitcoin and cryptocurrency ownership is the main catalyst behind the strong price surge of BTC.
Additionally, Donald Trump's plan to appoint a cryptocurrency advisor to the White House has significantly boosted BTC prices, bringing the price to its current level and surpassing key resistance levels.
Based on the chart above, Zwin reveals that Bitcoin has entered a new five-wave impulse from Elliott Wave theory. This bullish development comes after the cryptocurrency has surpassed key resistance lines.
Furthermore, Zwin's Bitcoin price chart shows the "Bump and Run Top Pattern," with this cryptocurrency having completed the "Bump Phase" and entering the "Run Phase." Considering this, the analyst has predicted that if Bitcoin can surge above $98,700, investors and market followers should expect the price to soar to $100,000.