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

As Bitcoin trade approaches $95,000 after two weeks of falling prices, analysts are wary of a potential major crash that could send the flagship asset plummeting to $60,000.

Bitcoin has fallen over 2.5% in the last 24 hours and hit an intraday low of $95,134 yesterday. The drop in price brought two-week losses to 3.7%, and the asset’s market value fell to $1.9 billion.

While the bulls attempt to maintain the critical $95,000 support level, on-chain data and market analysts suggest that Bitcoin price is much more likely to drop to $60,000 once Donald Trump is inaugurated on January 19.

Following Bitcoin’s drop near $95,000, Ali Martinez, a leading crypto analyst with over 104.3k followers, noted in a recent X post that some savvy investors have already transferred 33,000 BTC, worth more than $3.23 billion, from their wallets to exchanges. A downward scenario was probably expected last week.

Such a move usually occurs when investors remain cautious and prepare to sell their assets in anticipation of a potential price drop or increased market volatility.

The analyst added that investors making more profits in BTC also increased on December 23, with Bitcoin holders making a total profit of over $7.17 billion on that day.

Moreover, derivatives traders appear less optimistic about Bitcoin’s near-term price outlook. Notably, the percentage of investors holding long positions in the world’s largest cryptocurrency dropped from 66.73% to 53.6%.

According to Martinez, the key support level for Bitcoin lies between $93,806 and $97,041, and failure to hold this critical demand zone could result in Bitcoin’s price correcting towards $70,085.

Failure to hold $95,000 could trigger a deeper correction

Some other crypto industry experts have similarly warned that a drop in Bitcoin price below the critical $95,000 support level could trigger a significant decline, potentially dropping the price to as low as $60,000.

Market commentator Tone Vays warned that if the price of Bitcoin falls below $95,000, it could signal trouble and set the stage for a sharp correction to $73,000.

Veteran trader Peter Brandt, who famously predicted the Bitcoin crash of 2018, also expressed concerns that Bitcoin may be on the verge of breaking out of the “expanding triangle” (a bearish signal in technical analysis). approximately $70,000.

Meanwhile, Fundstrat managing director Mark Newton and analyst Benjamin Cohen expressed concerns that the Bitcoin price could drop to the $60,000 range in the short term.

Cohen suggests that the Bitcoin price could follow a similar pattern to other assets such as the Invesco QQQ Trust, potentially experiencing a crash due to major political events such as Donald Trump’s inauguration on January 19.

Bullish case for Bitcoin

Despite the bearish outlook, some analysts remain optimistic that Bitcoin’s decline will not be as steep as many have speculated.

TYMIO founder Georgii Verbitskii told crypto.news that he does not expect a major downturn for Bitcoin in the short term. He predicts that in a worst-case scenario, the price could only fall to $89,000 due to increased institutional activity supporting Bitcoin in the market.

“Usually during holidays there is not much liquidity in the market. Since today is the day when options expire the most, market makers are creating the volatility they need. “Things will most likely stabilize in the coming days and then we will see decent growth.”

TYMIO founder Georgii Verbitskii told crypto.news:

Fake trader Titan of Crypto also expects Bitcoin price to drop to $87,000 during the correction phase before the next rise towards $110,000.

Another prominent analyst observed that Bitcoin has now completed its third Elliott Wave count, which is usually the largest wave. The analyst set a target of $127,000 for Bitcoin.

In its latest analysis report shared on X on December 27, research company Santiment revealed an encouraging trend after the post-Christmas market-wide decline and stated that crypto whales are dominating the crypto market by actively moving stablecoins to exchanges.

Acknowledging that this does not guarantee whales will deploy their capital immediately, the firm concluded: “Consider this a bullish sign as 2024 draws to a close.”

At the time of writing, Bitcoin (BTC) was trading at $96,464, down 2.1%.