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The cryptocurrency market is facing renewed volatility and uncertainty following the recent <a target="_blank" href="https://bitcoinist.com/crypto-liquidations-800-bitcoins-crash-100000/amp/” rel=”nofollow”>bitcoin price drop below the $100,000 mark. As a result, a crypto analyst has <a target="_blank" href="https://x.com/ali_charts/status/1877007033544724711?s=46″ rel=”nofollow”>shared a fairly long post from x (formerly twitter) outlining what to expect after this major drop. Warns of critical levels to be aware of as they progress. <a target="_blank" href="https://bitcoinist.com/whos-selling-bitcoin-top-analyst-uncovers-old-whale-activity/amp/” rel=”nofollow”>Selling pressures intensifynoting that both macro and technical indicators paint a mixed picture of bitcoin's short-term price trajectory.
Key Levels to Watch After bitcoin Price Drop
According to prominent crypto analyst Ali Martínez, the price of bitcoin is once again trading below $100,000 after surpassing this milestone earlier this week. Martinez <a target="_blank" href="https://x.com/ali_charts/status/1877007035289534807?s=46″ rel=”nofollow”>revealed that the day before, bitcoin broke the right shoulder of a <a target="_blank" href="https://bitcoinist.com/bitcoin-bearish-head-and-shoulders-pattern-could-invalidate-above-this-price-level-details/amp/” rel=”nofollow”>Head and shoulders patterncompletely invalidating its bearish setup at the time. However, in just 24 hours, the cryptocurrency erased these significant gains, pushing its price back below the right shoulder of the technical pattern and <a target="_blank" href="https://bitcoinist.com/bitcoin-sentiment-drops-out-extreme-greed-bearish/amp/” rel=”nofollow”>reviving bearish sentiment.
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With its enormous <a target="_blank" href="https://bitcoinist.com/bitcoin-price-crash-to-96000/amp/” rel=”nofollow”>drop below $100,000bitcoin has now plummeted significantly below the key demand zone between $95,000 and $98,000, an area where approximately 1.77 million <a target="_blank" href="https://bitcoinist.com/bitcoin-addresses-holding-more-than-100-btc-spikes/amp/” rel=”nofollow”>wallet addresses had purchased over 1.53 million btc, worth over 141.3 billion at the current market price.
While many investors typically buy and hold btc for profit, the recent drop in bitcoin price has raised concerns that the owners of the 1.77 million wallet addresses may be forced to <a target="_blank" href="https://bitcoinist.com/bitcoin-long-term-sell-off/amp/” rel=”nofollow”>sell your shares to reduce possible losses. Martínez warns that increasing selling pressures could push the price of bitcoin below $92,000, which could trigger an even steeper and faster decline, with limited support until it reaches the $74,000 mark. Notably, the analyst calls a drop below $92,000 “free-fall territory,” meaning bitcoin could continue to collapse going forward. <a target="_blank" href="https://bitcoinist.com/bitcoin-top-buyers-panic-sell-loss-btc-slips-93000/amp/” rel=”nofollow”>Panic selling intensifies and liquidity runs out.
Adding to the current uncertainty, bitcoin's reversal below the right shoulder of the Head and Shoulders pattern, combined with current bearish market conditions, has reignited fears, leaving many investors bracing for a <a target="_blank" href="https://bitcoinist.com/is-bitcoin-price-at-risk-for-drop-to-78000-how/amp/” rel=”nofollow”>deeper price drop.
Rebound on the horizon or more pain ahead?
Despite bitcoin's current bearish outlook, Martinez assures members of the crypto community that a price rally is possible. The analyst revealed that bitcoin's TD Sequential Indicator recently showed a buy signal on the 4-hour chart, suggesting that a potential price recovery and rebound may be underway.
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Curiously, Binance Traders They remain bullish on bitcoin, and this bullish sentiment points to a near-term recovery towards $98,600, a price level with a $35 million liquidation zone that market makers covet. Martínez highlights that a sustained break above the $100,000 mark is instrumental in invalidating bitcoin's current bearish outlook and setting the stage for new all-time highs.
However, if bitcoin fails to regain this psychological level and falls below $92,000, it risks a further decline, potentially correcting towards new lows of the range between $78,000 and $74,000. At the time of writing, bitcoin price is trading at $94.154, meaning that a drop to these range lows would mark a massive drop from 17.16% to 21.41%.
Featured image created with Dall.E, chart from Tradingview.com
