Bitcoin in trouble? Analysts warn of a possible decline to $60,000

With Bitcoin trading near $95,000 after two weeks of price declines, analysts are concerned about a potential massive collapse that could see the key asset fall to $60,000.

Bitcoin is down more than 2.5% over the past 24 hours, with an intraday low of $95,134 yesterday. The price decline extended the two-week losses to 3.7%, with the market value of the assets falling to $1.9 billion.

As the bulls seek to defend the critical $95,000 support level, on-chain data and market analysts point to a much greater possibility of Bitcoin’s price falling to $60,000 by Donald Trump’s inauguration on January 19.

After Bitcoin recently dropped near $95,000, prominent cryptocurrency analyst Ali Martinez, who has over 104.3K followers, noted in a recent X report. mail Some savvy investors have already transferred more than 33,000 Bitcoin, worth more than $3.23 billion, from their wallets to exchanges over the past week, and are likely anticipating a bearish scenario.

Such a move usually occurs when investors become cautious and prepare to sell their holdings, anticipating a possible decline in prices or increased market volatility.

The analyst added that further Bitcoin investor profit-taking also surged on December 23, with Bitcoin holders collectively making more than $7.17 billion in profits that day.

Furthermore, derivatives traders appear less optimistic about Bitcoin’s near-term price outlook. It is worth noting that the percentage of traders who took buying positions on the largest cryptocurrency in the world decreased from 66.73% to 53.6%.

According to Martinez, the key support level for Bitcoin is between $93,806 and $97,041, and failure to maintain this critical demand zone could lead to a correction in the Bitcoin price to $70,085.

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

Some other crypto industry experts have the same thing to caution That further declines BitcoinA fall in the stock price below the critical support level of $95,000 could lead to a significant decline, which could push it as low as $60,000.

Market commentator Tone Vays warned that if Bitcoin’s price drops below $95,000, it could indicate trouble and set the stage for a sharp correction to around $73,000.

So did Peter Brandt, the veteran trader who predicted the Bitcoin collapse in 2018 He expressed his concerns That Bitcoin may be about to break out of the “expanding triangle” – a bearish signal in technical analysis – which could lead to a decline to around $70,000.

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

Cohen notes that Bitcoin’s price may follow a similar pattern to other assets, such as the Invesco QQQ Trust, and will likely see a collapse due to important political events, such as Donald Trump’s inauguration on January 19.

The bullish case for Bitcoin

Despite the bearish outlook, some analysts remain optimistic that Bitcoin’s decline may not be as difficult as many expect.

Georgi Verbitsky, founder of TYMIO, told crypto.news that he does not expect any major declines in Bitcoin in the short term. In the worst-case scenario, he expects the price to only fall to a low of $89,000, citing increased institutional activity in the market supporting Bitcoin.

“Normally, there is not a lot of liquidity in the market during the holidays. Today is the biggest expiration for options, so market makers are creating the volatility they need. In the coming days, everything will likely stabilize and we will see smooth growth after that.”

Georgi Verbitsky, founder of TYMIO, told crypto.news.

The trader is also under the pseudonym Titan of Crypto expected A similar drop in Bitcoin price to $87,000 during the correction phase before the next upward move towards $110,000.

Another prominent analyst Notice Bitcoin is currently completing its third Elliott wave count, which is usually the largest wave. The analyst set a target of $127,000 for Bitcoin.

In its latest analytical report subscriber On Day

While acknowledging that this does not guarantee that whales will deploy their capital immediately, the company concluded, “Consider this a bullish sign as 2024 comes to a close.”

At the time of publication Bitcoin (Bitcoin) by 2.1%, and was traded at $96,464 per coin.