Recent analyses suggest that Bitcoin (BTC) could face a further decline to $60,000 to $70,000 by the time of Donald Trump’s inauguration on January 20. This scenario seems increasingly likely after BTC recently fell below the critical support level of $95,000, with selling pressure intensifying following rejection at $100,000 during Christmas.
Bitcoin Under Pressure: Data Signals Further Decline
After briefly reaching $100,000, selling pressure pushed Bitcoin’s price back to $95,000. On-chain data indicates insufficient buying interest to support a renewed rally.
Analyst Ali Martinez identified a key support zone between $97,041 and $93,806. He warned that if BTC fails to hold this demand area, the price could plummet to $70,085.
Rising Exchange Reserves: A Warning Sign for Selling Pressure
One alarming trend is the sharp increase in Bitcoin exchange reserves after reaching its all-time high of $100,000. Over the past week, more than 33,000 BTC, worth over $3.23 billion, were transferred to exchanges, indicating caution among investors and potential selling pressure.
Additionally, profit-taking surged during the holiday season, with investors cashing out over $7.17 billion on December 23. This highlights significant market activity during the festive period.
Potential for a Bullish Reversal
Martinez suggests that for Bitcoin to reverse its bearish trend, it must reclaim the $97,300 support zone and consistently close above $100,000. If bulls manage to maintain this level, BTC could rise to $168,000, according to the Mayer Multiple indicator.
Currently, Bitcoin is trading at $96,038, down 2.2%, with a market capitalization of $1.9 trillion and a 24-hour trading volume of $46 billion.
Analysts Predict Further Drop Before Recovery
Several analysts warn of further downside if Bitcoin loses its $95,000 support. Tone Vays expressed concerns that trading below this critical level significantly increases the probability of a decline to $73,000. Meanwhile, Peter Brandt highlighted the risk of BTC breaking down from an “expanding triangle” pattern, which could lead to a retracement toward $70,000.
On the other hand, Fundstrat remains optimistic, forecasting Bitcoin could reach $250,000 by 2025, though a drop to $60,000 may precede this rise. Benjamin Cowen from IntoTheCryptoVerse speculates that BTC might mirror price patterns seen in the Invesco QQQ Trust index, potentially dropping to $60,000 around Trump’s inauguration.
Are Altcoins the New Focus?
While Bitcoin faces the risk of further decline, analysts believe that altcoins could see a resurgence. Many investors are shifting their attention to the altcoin market, which is poised for potential growth, indicating that the altcoin rally may not be over yet.
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