Bitcoin in trouble? Analysts warn of potential pullback to $60k

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As a seasoned analyst with over two decades of experience in financial markets, I have witnessed numerous market cycles and their subsequent ebbs and flows. The current state of Bitcoin, trading around $96k, presents an interesting conundrum for me.

After a fortnight of decreasing Bitcoin prices, bringing it close to $95,000, financial experts are cautioning about the possibility of a significant plunge. This potential downturn might cause the leading cryptocurrency to dip as low as $60,000.

Over the past day, I’ve observed a decline of approximately 2.5% in Bitcoin’s value, with its lowest point yesterday reaching $95,134. This downturn has extended Bitcoin’s losses over the last fortnight to around 3.7%. Consequently, the market capitalization of this digital asset has decreased to roughly $1.9 billion.

As bulls work hard to uphold the crucial $95,000 defense line, on-chain analysis and market experts seem to favor a more likely scenario of Bitcoin’s value dropping to around $60,000 by January 19, when Donald Trump is inaugurated.

After Bitcoin dipped close to $95,000, well-known cryptocurrency analyst Ali Martinez (with 104.3k followers) suggested in a recent post that astute investors have moved approximately 33,000 BTC, worth over $3.23 billion, from their digital wallets to exchanges during the past week, possibly preparing for a potential bear market.

This action is often taken by investors who become wary and decide to offload their investments, anticipating a possible decrease in prices or an increase in market turbulence.

On December 23rd, there was a significant increase in investors cashing out their Bitcoins for profit. In fact, Bitcoin holders collectively made over $7.17 billion in profits on that day, according to an analyst’s assessment.

Additionally, it seems that derivative traders are showing reduced optimism about Bitcoin’s short-term price trajectory. Specifically, the number of traders who are betting on Bitcoin’s price increase has decreased significantly, falling from 66.73% to 53.6%.

As per Martinez’s analysis, the crucial support area for Bitcoin is estimated to be around $93,806 to $97,041. If Bitcoin fails to maintain this significant demand region, it might lead to a price adjustment down to approximately $70,085.

Failure to hold $95k may spark deeper correction

Other professionals in the cryptocurrency sector are also expressing concerns that if Bitcoin’s price falls beneath the crucial $95,000 support point, it might lead to a substantial decrease, possibly causing its value to dip down to around $60,000.

Financial analyst Tone Vays cautioned that should the value of Bitcoin drop under $95,000, this might indicate potential issues, potentially leading to a steep decline toward approximately $73,000.

Experienced trader Peter Brandt, who correctly forecasted the Bitcoin dip in 2018, has voiced worries that Bitcoin might imminently plummet due to a “broadening triangle” pattern – a pessimistic indicator used in technical analysis. This potential breakdown could lead to a decrease in value to approximately $70,000.

Currently, Mark Newton, as Fundstrat’s managing director, and analyst Benjamin Cohen have voiced their worries about a potential drop in Bitcoin’s value towards the $60,000 level within the near future.

Cohen proposes that Bitcoin’s value may mirror trends seen in other investments, like the Invesco QQQ Trust. He speculates that it could encounter a dip during notable political occurrences, such as Donald Trump’s inauguration on January 19th, potentially leading to a market drop.

The bullish case for Bitcoin

Regardless of the pessimistic forecasts, certain analysts express hope that Bitcoin’s decline might not be as severe as widely anticipated.

Georgii Verbitskii, the creator of TYMIO, shared with crypto.news his prediction that there won’t be significant declines for Bitcoin in the near future. In the most pessimistic outlook, he estimates the price could dip to a minimum of around $89,000, attributing this potential decrease to the growing institutional involvement and support for Bitcoin within the market.

Normally, markets tend to be less active during holidays due to reduced liquidity. However, today marks a significant day for options expiration, leading market makers to artificially generate volatility. In the near future, it’s expected that things will settle down and we might observe a steady growth path.

Georgii Verbitskii, founder of TYMIO told crypto.news.

Anonymous cryptocurrency investor Titan expects a fall in Bitcoin’s value around $87,000 while it corrects itself, followed by another rise towards approximately $110,000.

A well-known expert notes that Bitcoin’s price action appears to be wrapping up its third significant Elliott Wave, often the most extensive one. This analyst predicts Bitcoin could reach a high of around $127,000.

As an analyst, I recently observed an intriguing pattern in the cryptocurrency market, which was highlighted in a report shared on December 27th by Santiment. Following the market-wide dip after Christmas, it appears that large crypto investors, often referred to as ‘whales,’ are exerting significant influence. Notably, they have been actively transferring stablecoins to cryptocurrency exchanges.

Although it’s important to note that this doesn’t mean whales will invest their funds straight away, the company interprets this action as a positive indication, saying, “This could be seen as an optimistic signal as we approach the end of 2024.

At press time Bitcoin (BTC) was down 2.1%, trading at $96,464 per coin.

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2024-12-27 14:20