Analysts: If Bitcoin drops below $90,000, it will form a head and shoulders pattern.
Bitcoin has recently experienced a significant pullback, dropping from a high of $102,800 to around $92,000.
Foreign media (Cointelegraph) pointed out that this is the second largest single-day decline for Bitcoin in 19 weeks, and the daily chart has formed a bearish engulfing pattern.
Market analyst Jelle stated that after the market buying failed to stabilize Bitcoin above $100,000, it is expected to test the support level of $90,000. However, he is optimistic about the future market, noting that new highs will only appear after the lows are broken.
(Cointelegraph) analysis indicates that from the daily trend, if Bitcoin closes below $90,000, it will form a reverse head and shoulders pattern, which could trigger a deeper pullback with a target price of $71,500.
Source: Cointelegraph. Analysts: If Bitcoin drops below $90,000, it will form a head and shoulders pattern.
Since the pullback in December, crypto whales have been accumulating large amounts of Bitcoin.
However, the behavior of institutional investors may suggest another side of the market.
Blocktrends research director Cauê Oliveira pointed out that since Bitcoin set a new high of $108,000 in December 2024 and pulled back, crypto whales have begun to seize the opportunity to accumulate.
Oliveira stated that wallets holding 1,000 to 10,000 bitcoins sold 79,000 bitcoins within a week after December 21, leading to a 15% price drop.
However, these whales then began to take advantage of the price pullback, accumulating Bitcoin below $95,000 through multiple small transactions, having accumulated over 34,000 bitcoins worth approximately $3.2 billion.
Source: CryptoQuant. After nearly 80,000 bitcoins were sold off at the end of December, the 7-day balance change of Bitcoin has turned positive.
Foreign media (CoinDesk) further pointed out that this pullback has caused large-scale liquidations in the cryptocurrency market, with nearly $1 billion in leveraged perpetual contract market liquidations over the past two days, mainly from long positions.
QCP remains optimistic: Bitcoin will rebound in the short term.
Looking ahead, multiple institutions hold a cautiously optimistic attitude towards Bitcoin's prospects. Well-known cross-asset trader and Station3 NYC founder Bob Loukas believes that Bitcoin may rebound from its lows, but before setting new highs, the price may consolidate within a range and could even pull back further.
Cryptocurrency trading company QCP stated that the upcoming U.S. non-farm payroll data and the Fed's meeting at the end of the month will affect Bitcoin's trend.
As Trump's inauguration date approaches, market expectations are heating up. QCP believes that the current pullback is just a temporary breather for the market, which is preparing for the optimistic sentiment brought by Trump's inauguration.
Fidelity is also optimistic about Bitcoin's future development.
Fidelity's digital assets division is also optimistic about Bitcoin's future development, expecting more countries, central banks, sovereign wealth funds, and government finance departments to attempt to establish strategic positions in Bitcoin; Blockware analysts further predict that if the U.S. establishes Bitcoin reserves, Bitcoin will still exceed $150,000 in the worst case and may soar past $400,000.
However, there are still some uncertainties in the cryptocurrency market in the short term. Strong economic data from the U.S., soaring bond yields, concerns about inflation and the Fed's hawkish stance, along with uncertainties about the tariffs policy of President-elect Trump, could all affect Bitcoin's trend. Therefore, analysts advise investors to remain cautious in January.
'Will Bitcoin drop further? Analysts: Pay attention to the support situation of this pattern; breaking below may lead to a drop to $70,000.' This article was first published in 'Crypto City'.
