Bitcoin Price Could Drop to $70K, Analysts Warn

Highlights:

• Analysts warn Bitcoin price could fall further if $95,000 support fails, signaling weakness.
• Over 33,000 Bitcoin moved to exchanges, signaling potential selling pressure and downturn risk.
• Profit-taking and decreased long positions show caution among traders in the short term.

Bitcoin is facing strong selling pressure after failing to break $100K on Christmas. The bulls are trying to hold the $95,000 support. On-chain data shows weakness, suggesting Bitcoin doesn’t have enough strength to keep rising.

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Bitcoin Price Faces Increased Selling Pressure and Caution as Key Support Weakens

Analyst Ali Martinez pointed out that Bitcoin’s important support zone is between $97,041 and $93,806. He warned that if Bitcoin falls below this range, it could drop sharply to $70,085. Another issue is the rise in BTC exchange reserves, which increased during Bitcoin’s surge to $100K.

Martinez reports that crypto investors may be preparing for a potential downturn. In the past week, over 33,000 Bitcoin, worth more than $3.23 billion, have been moved to exchanges. This shift signals increased caution and the possibility of selling pressure.

On the other hand, profit-taking for BTC has increased in the past week. On December 23, Bitcoin investors realized over $7.17 billion in profits. This shows strong market activity and profit booking during the holiday period, according to Martinez. Additionally, derivatives data reveals that traders are not very optimistic about Bitcoin in the short term. The percentage of traders holding long positions on Bitcoin on Binance has dropped significantly, from 66.73% to 53.60%.

From an on-chain perspective, a #Bitcoin $BTC price correction to $70,000 is possible, understanding that below $93,806, it is pretty much open air all the way down to $70,085. https://t.co/3vDqpGy8UE

— Ali (@ali_charts) December 26, 2024

On Christmas, Bitcoin dropped below key support at $97,300. According to Ali Martinez, 1.51 million wallets had purchased 1.49 million BTC at this level. For a shift in sentiment, Bitcoin must reclaim this support. Additionally, it needs to close above $100,000 to turn the market bullish.

Martinez also mentioned that if Bitcoin bulls can hold the $100K support, BTC could rise to $168,000 based on the Mayer Multiple. At the time of writing, Bitcoin was up 2%, trading at $96,526. Its market cap is $1.9 trillion, with the 24-hour trading volume up 12%, reaching $47 billion.

If #Bitcoin $BTC can sustain a daily close above $100,000, we could be looking at a new leg up toward $168,500. https://t.co/NnGhciSoQP

— Ali (@ali_charts) December 26, 2024

Bitcoin ‘Head and Shoulders’ Pattern Could Trigger $80K Dip

On December 26, Chartered Market Technician Aksel Kibar shared his prediction, suggesting that Bitcoin could drop to $80k. Analyzing daily timeframes, he pointed out the potential for a head-and-shoulders pattern, a classic signal of a possible uptrend reversal.

He stated:

“Breakout from the broadening chart pattern that completed on $BTCUSD… the pullback can take place with a possible short-term H&S top. (IF) the right shoulder becomes better defined…”

He advised keeping this possibility in mind. In another post, he outlined how low BTC/USD could fall if this scenario occurs.

Kibar added: 

“If the pattern acts as a H&S top, the price target is at 80K. This can be the pullback to the broadening pattern that completed with a breakout above 73.7K.”

Several analysts warn Bitcoin price could fall further if it loses support at $95,000. Tone Vays expressed concern about Bitcoin trading below this level. He called it “very, very bad” and suggested a potential drop to $73,000.

Veteran trader Peter Brandt also warned that Bitcoin might break down from a “broadening triangle” pattern. If this happens, he predicts a retracement toward the $70,000 zone.

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