Bitcoin has dropped more than 8.5% in the past four days after rising back above $100,000 earlier this week. This decline has led to questions about whether this level is the local peak for BTC's price, and if so, how low Bitcoin's price could drop in the coming days.
Bitcoin Price May Drop to Seek Support at $90,000
Bitcoin's latest downtrend has led market analysts to believe that the price could test around $90,000 again.
“Bitcoin fell below the support range of 97-95K yesterday, hitting the lowest level in that range,” Bitcoin analyst AlphaBTC said in a post on January 9 on X.
“The big question now is whether it has completed or is just cooling off a bit before hitting the low of $90,000?”
The analyst states that the BTC price could bounce back from the $90,000 level, but they "will have to assess the situation as price action continues to change."
The accompanying chart below shows that if the $90,000 support level is broken, Bitcoin could drop to the range of $88,600 and $87,500.
Analyst Emperor also shares a similar view, stating, "Leverage is gradually being removed from Bitcoin," which could push the price to $90,000, where "a good recovery is expected."
MN Capital founder Michael van de Poppe predicts that the price of Bitcoin will drop to a lower range of $90,000 to $92,000, adding that another attractive price level is around $85,300.
“There is a possibility that liquidity will drop below previous lows before rising again.”
Julio Moreno, head of research at CryptoQuant, points out that unrealized profit margins of traders on-chain have decreased significantly in the context of Bitcoin's price correction, adding, "This is a healthy situation after the price surge above $100,000."
According to Moreno, Bitcoin's short-term bearish target is around $88,000, which is the actual price of traders.
“The actual price of traders (pink line, price support level in a bull market) is currently $88,000.”
Bitcoin's H&S Pattern Aiming for a Target of $73,000
Technically, the price of Bitcoin has formed a head and shoulders (H&S) pattern on the daily chart, as veteran trader Peter Brandt has observed.
In his latest Bitcoin analysis on X, Peter explains that although BTC's main trend remains bullish, the price action is forming a head and shoulders peak on the daily chart.
“This pattern could push the price to $73,000.”
Another analyst, Micro2Macr0, also sets a similar bearish target as he believes that if the price of Bitcoin drops to $90,000, this level will not hold, paving the way for further losses.
Micro2Macr0 sets lower targets at $84,885 and $72,962, corresponding to the 100-day and 200-day simple moving averages.
For trader and analyst Aksel Kibar, Bitcoin's last defensive threshold is at $73,700, around the previous all-time high price of BTC, which may limit the downward momentum of BTC's price.
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