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The recent rejection at $100,000 has sparked a wave of warnings from leading financial analysts, who warn that bitcoin could be poised for a significant pullback towards the $70,000 region or, in some cases, even $60,000. Ali Martínez (@ali_charts), crypto analyst, <a target="_blank" href="https://x.com/ali_charts/status/1872271687728963774″ target=”_blank” rel=”nofollow”>compiled the views of several market veterans on x, offering a multi-perspective view on the likelihood of an imminent correction.
Is bitcoin price crash coming?
One of the voices in this discussion is Tone Vays, a well-known trader who has expressed serious concerns about the trajectory of bitcoin. Vays conveyed that bitcoin trading below $95,000 is “very, very bad,” as it increases the likelihood of a correction to around $73,000.
In a shared video, Vays explained: “We are now opening the day of the month trading below $95,000, (…getting too close to the $92,000 range literally opens like Pandora's box in a massive drop to $73,000). .Now, I'm not saying I'm going to blow the $73,000. I'm saying that it has significantly increased the possibility that we can easily reach $73,000. You are sitting on the last line of support.”
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Peter Brandt, another prominent analyst, added to the growing concern by discussing the formation of a “widening triangle” on the bitcoin price chart. According to Brandt, this pattern could potentially project a pullback towards the $70,000 area. Although Brandt was careful to clarify that his statements are not definitive predictions, he emphasized the growing possibility of such a move.
“Hello trolls, this is not a prediction. Always pointing out possibilities, not probabilities, not “certainties.” No screenshot needed, btc’s right-angled widened triangle could project back to $70,000 and a test of parabolic mode,” Brandt stated.
In contrast to these bearish views, Fundstrat maintains a more optimistic long-term outlook, predicting that bitcoin could reach $250,000 by 2025. However, Fundstrat Global Head of Technical Strategy Mark Newton acknowledges the potential for volatility. in the short term, suggesting that bitcoin could experience a drop to $60,000 before embarking on its ascent.
In a video shared by Martinez, Fundstrat CEO Tom Lee explained this outlook: “bitcoin, within a year, I think will be around $250,000. (…) it is hypervolatile. People don't like volatility. Yes, Mark Newton, our technician, thinks that the bitcoin cycle will go down a little bit early next year, so maybe bitcoin will hit $60,000.”
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Adding to the chorus of caution, Benjamin Cowen, CEO and founder of Into The Cryptoverse, posits that bitcoin's price action could mirror that of the Nasdaq 100 (QQQ). According to Cowen, this alignment could precipitate a “flash drop” to $60,000, potentially coinciding with Donald Trump's inauguration day.
From the point of view of chain analysis, Martínez confirms the bearish possibilities. He notes that if bitcoin falls below $93,806, the path towards $70,085 becomes increasingly plausible, and describes the area below as “open air to $70,085.” Martínez identifies the critical support zone between $97,041 and $93,806, emphasizing that failure to maintain these levels could trigger a sharp decline.
It notes that market dynamics indicate that some investors are preparing for such a downturn, as evidenced by the transfer of over 33,000 btc (valued at over $3.23 billion) to exchanges last week. Furthermore, profit-taking appears to be intensifying, with over $7.17 billion in bitcoin profits made on December 23 alone.
The proportion of Binance traders with open long positions in btc also decreased from 66.73% to 53.60%, suggesting a shift in market sentiment towards a more bearish stance.
Ultimately, Martinez underscores the importance of bitcoin reclaiming the $97,300 support zone to invalidate bearish forecasts. “bitcoin recently broke below one of its major support zones at $97,300. Therefore, for the bearish outlook to be invalidated, btc must reclaim this critical support area and, more importantly, maintain a daily close above $100,000,” he states.
If bitcoin manages to maintain a daily close above $100,000, Martínez raises the potential for a significant rally, possibly reaching $168,500 based on the Mayer multiple. However, failure to do so leaves the door open for the planned corrections to materialize.
At the time of this publication, btc was trading at $96,905.
Featured image created with DALL.E, chart from TradingView.com
