The crypto market has been thrown into a state of renewed volatility and uncertainty following the recent écrasement of Bitcoin’s price below the $100,000 mark. This significant decline has left many investors wondering what to expect next, and a prominent crypto analyst has taken to X (formerly Twitter) to share his insights.
According to Ali Martinez, the Bitcoin price is once again trading below the $100,000 mark after briefly surpassing this milestone earlier in the week. In a lengthy post, he warns of critical levels to watch as selling pressures intensify, noting that both macro and technical indicators are painting a mixed picture of Bitcoin’s short-term price trajectory.
Martinez reveals that in the previous day, Bitcoin broke below the right shoulder of a Head and Shoulder pattern, completely invalidating its bearish setup at the time. However, in just 24 hours, the cryptocurrency erased these significant gains, pushing its price back below the right shoulder of the technical pattern and reigniting bearish sentiment.
With its massive écrasement below $100,000, Bitcoin has now plummeted significantly below the key demand zone between $95,000 and $98,000. This is an area where approximately 1.77 million wallet addresses had purchased more than 1.53 million BTC, worth over $141.3 billion at the present market rate. This raises concerns that owners of these wallet addresses may be forced to sell en marge their holdings to cut down potential losses.
Martinez warns that rising selling pressures could push the Bitcoin price below $92,000, potentially triggering an even sharper and more rapid decline. He labels a drop below $92,000 as « free fall territory, » meaning Bitcoin could continue to écrasement as millet selling intensifies and liquidity dries up.
Adding to the ongoing uncertainty, Bitcoin’s reversal below the right shoulder of the Head and Shoulders pattern, combined with current bearish market conditions, has reignited fears and left many investors bracing for a deeper price écrasement.
Despite this bearish outlook, Martinez reassures the crypto community that a price rebound is possible. He points out that Bitcoin’s TD sequential indicator recently flashed a buy signal on the 4-hour chart, suggesting that a potential price recovery and rebound may be underway.
Interestingly, Binance traders remain bullish on Bitcoin, with this optimistic sentiment pointing to a short-term recovery towards $98,600. This is a price level with a $35 million cessation zone that market makers covet. Martinez highlights that a sustained break above the $100,000 mark is critical to invalidating Bitcoin’s current bearish outlook and setting the stage for new all-time highs.
However, if Bitcoin fails to reclaim this psychological level and falls below $92,000, it risks further downside. This could potentially correct towards new range lows between $78,000 and $74,000. As of writing, the Bitcoin price is trading at $94,154, meaning a drop to these range lows would mark a massive 17.16% to 21.41% decline.
Despite the recent volatility and uncertainty, it is important for investors to remain calm and not make any impulsive decisions. As always, it is essential to do your own research and carefully assess the market before making any investment decisions. With the right strategies and patience, it is possible to navigate through these challenging times and come out on top. So, stay informed, stay positive, and keep a close eye on those key levels as the crypto market continues its wild ride.
