Bitcoin’s value hovers near $95,000, sparking concerns among analysts about a potential significant downturn that could see the cryptocurrency plummet to $60,000.
In the past 24 hours, Bitcoin has experienced a drop of over 2.5%, reaching an intraday low of $95,134. This decline marks a total loss of 3.7% over the past two weeks, with its market capitalization slipping to $1.9 trillion.
Despite efforts from market bulls to maintain the critical $95,000 support level, on-chain data and expert analysis indicate a heightened likelihood of a price drop to $60,000 before the inauguration of Donald Trump on January 19.
Prominent crypto analyst observations highlight that over 33,000 BTC, valued at more than $3.23 billion, have been transferred from private wallets to exchanges by investors in the past week, signaling preparations for a bearish market scenario.
In addition, Bitcoin holders realized over $7.17 billion in profits on December 23, reflecting a trend of profit-taking as market caution escalates.
Furthermore, sentiment among derivative traders is turning bearish, with the percentage of traders taking long positions on Bitcoin dropping from 66.73% to 53.6%.
Key support levels for Bitcoin are identified between $93,806 and $97,041. Analysts warn that failing to maintain this support could lead to a correction down to approximately $70,085.
Potential for Deeper Correction Ahead
Industry experts caution that a downturn below the pivotal $95,000 level could initiate a substantial decline, potentially dragging Bitcoin as low as $60,000.
Market commentator Tone Vays has alerted investors that if prices fall below $95,000, it may suggest impending trouble and set the stage for a sharp correction toward $73,000.
Veteran trader Peter Brandt has also raised alarms about Bitcoin potentially breaking down from a “broadening triangle,” a bearish indicator that could result in a price drop to around $70,000.
Analysts from Fundstrat and others are increasingly concerned that Bitcoin’s trajectory may fall into the $60,000 range in the near term, drawing parallels with other assets that historically experience downturns during significant political shifts.
Bullish Perspectives Amidst Bearish Trends
Georgii Verbitskii, founder of TYMIO, estimates that Bitcoin may only dip to a low of $89,000, bolstered by increased institutional activity supporting the market.
“Typically, there isn’t much liquidity on the market during holidays. With significant options expirations occurring today, market volatility is expected, but we anticipate that stability will return soon,” stated Verbitskii.
Pseudonymous trader Titan of Crypto projects a decrease in Bitcoin’s price to $87,000 before a subsequent rise toward $110,000.
Another analyst asserts that Bitcoin is nearing the completion of its third Elliott Wave count, which often signifies the largest wave, with a target price of $127,000.
Recent research indicates a growing trend among crypto whales transferring stablecoins to exchanges, suggesting potential upward momentum as we approach the end of 2024.
As of the latest update, Bitcoin (BTC) is down 2.1%, trading at $96,464 per coin.
