The market's New Year's rally turned into an early-year pullback after bitcoin (btc) fell from the recently regained $100,000 support to the $94,000 territory. Amid the decline, one analyst shared his “cautiously bullish” outlook for the btc price.
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bitcoin risks drop to $74,000
On Tuesday, bitcoin fell below $97,000, dragging the market into its first pullback of the year. btc started the year 2025 trading around the $92,000 level but rose around 6.5% in the following days.
After turning $98,000 resistance into support over the weekend, bitcoin jumped back above $100,000, hitting its highest price in weeks. However, btc struggled to hold this key support zone, falling 3% in one hour yesterday.
The cryptocurrency has fallen another 2.5% in the past day, falling as low as $94,500 on Wednesday morning. Since then, btc has ranged between $94,800 and $95,600, briefly testing the $96,000 resistance.
Cryptographic analyst Ali Martínez <a target="_blank" href="https://x.com/ali_charts/status/1877007033544724711″ target=”_blank” rel=”nofollow”>examined The recent performance of btc. In an x threat, the analyst noted that bitcoin had “violated the right shoulder of a head and shoulders pattern” on Monday, invalidating the bearish setup pattern.
However, the reversal “erased those gains, dragging btc back below the right shoulder and reigniting bearish concerns,” as this pattern could trigger a correction to at least $78,000. Martínez also noted that bitcoin has fallen below a key demand zone, between $95,400 and $98,400, where 1.77 million addresses acquired more than 1.53 million btc.
The analyst suggested that the price drop could force these holders to “sell some btc to reduce potential losses.” He also noted that there is no significant resistance ahead for the flagship cryptocurrency, with only a minimum supply wall of 107,000 btc between $104,700 and $105,770.
However, the analyst warned that an increase in selling pressure that pushes the cryptocurrency below the $92,000 mark “could spell trouble,” as it would open “the door to a steep decline, with little support until $74,000.” dollars.”
“Therefore, current market conditions, from a macro perspective, are reigniting fears of a possible bitcoin crash,” he added.
Will btc Price Rebound Soon?
The analyst also shared a “cautiously bullish” outlook for btc from a technical perspective. Martinez noted that TD Sequential presented a buy signal on bitcoin's 4-hour chart, suggesting a possible price rebound if the price can hold the $93,500 support zone.
Furthermore, he highlighted that Binance traders “are leaning bullishly towards bitcoin,” as 61.28% of all traders on the crypto exchange with open positions are betting that the price will rise.
Martinez also noted that $35 million would be liquidated if the price of btc rebounds to $98,600, suggesting that market makers “could try to grab it.” Similarly, there is another $66 million liquidation zone above $103,300.
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However, the analyst emphasized that bitcoin must reclaim the $100,000 support to invalidate the bearish outlook and “set its sights on new all-time highs.” Martínez concluded that btc could recover to $98,600 in the short term, but “the macro suggests caution.”
At the time of writing, bitcoin is trading at $94,500, down 3.3% on the daily period.
Featured image from Unsplash.com, chart from TradingView.com
