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The recent rejection of $ 100,000 has caused a wave of warnings from the leading financial analysts, who warn that Bitcoin may be in the position of a significant reversal in the region of $ 70,000 or, in some cases, even $ 60,000. Ali Martinez (@ali_charts), a crypto analyst, has compiled the opinions of several market veterans on X, giving a lot of insight into the possibility of an upcoming correction.
Bitcoin Price Crash Coming?
One of the voices in this discussion is Tone Vays, a well-known trader who expressed great concern about the trajectory of Bitcoin. Vays conveyed that Bitcoin trading below $95,000 is “very bad” as it increases the possibility of a correction to $73,000.
In the shared video, Vays explained, “We are now opening a monthly day trade below $95,000, […] getting too close to the $92,000 range literally opens up like a Pandora’s box for a major risk up to $73,000. Now, I’m not saying it’s going to crash at $73,000. I say it’s likely to go up a lot that we could easily go to $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 an “expanding triangle” on the Bitcoin price chart. According to Brandt, this pattern could result in a pullback to the $70,000 area. Although Brandt was careful to clarify that his statements were not definitive predictions, he emphasized the possibility of such a move.
“Hey trolls – this is not a prediction. You are always pointing to a possibility, not a possibility, not a ‘certainty’. No screenshot needed, the BTC expanding triangle to the right can go back to $70,000 and test the parabolic modality,” said Brandt.
Compared to these bearish views, Fundstrat maintains a more optimistic long-term view, predicting that Bitcoin could reach $250,000 by 2025. However, Fundstrat’s Global Head of Technical Strategy, Mark Newton, admits that there may be short-term volatility, suggesting that Bitcoin may experience a drop to $60,000 before rising.
In a video shared by Martinez, Fundstrat CEO Tom Lee elaborated on the idea: “Bitcoin, one year from now, I think is something around $250,000. […] hyper volatile. People don’t like change. Yes, Mark Newton, our expert, thinks that the Bitcoin cycle is going to reverse a bit early next year, so maybe Bitcoin reaches the $60,000s.”
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Adding to the warning, Benjamin Cowen, CEO and Founder of Into The Cryptoverse, states that Bitcoin’s price action could be similar to that of the Nasdaq 100 (QQQ). According to Cowen, this alignment could cause a “flash crash” to $60,000, possibly coinciding with the day of Donald Trump’s inauguration.
From an on-chain analytical perspective, Martinez confirms the bearish possibilities. He notes that if Bitcoin falls below $93,806, the path to $70,085 becomes increasingly clear, describing the area below as “open air up to $70,085.” Martinez points to an important support area between $97,041 and $93,806, stressing that failure to maintain these levels could result in a major decline.
He sees that market volatility shows that some investors are preparing for such a drop, as evidenced by the transfer of more than 33,000 BTC (a value of more than 3.23 billion) in trading last week. In addition, profit taking seems to be increasing, more than $ 7.17 billion of Bitcoin profit was received 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 bearish trend.
Finally, Martinez emphasizes the importance of Bitcoin regaining the $97,300 support area to invalidate bearish forecasts. “Bitcoin has recently fallen below one of its most important support areas at $97,300. Therefore, for the bearish view to be ineffective, BTC must recover this important support area and, more importantly, maintain a daily close above $100,000,” he says.
If Bitcoin is able to support the daily closing above $ 100,000, Martinez puts the potential for a significant increase, which may reach $ 168,500 based on the Mayer Multiple. However, failure to do so leaves the door open for predicted corrections to occur.
At press time, BTC traded at $96,905.
The featured image was created with DALL.E, a chart from TradingView.com