As Bitcoin fails to hold key levels amid increasing selling pressure, market experts warn of a crash in early 2025.
Bitcoin BTC $96 266 24h volatility: 0.9% Market cap: $1.91 T Vol. 24h: $48.28 B struggling under the $100K level has triggered a sharp pullback, raising concerns about its ability to hold key support levels. With bearish signals dominating and liquidation events surging, the price now faces critical zones.
While short-term risks point to a drop as low as $70,000, some experts remain optimistic about a long-term rally by 2025.
With a bullish failure to reach the $100,000 mark, the higher price rejection from $99,881 resulted in a 3.71% pullback last night. This creates a bearish engulfing candle and completes a leading share pattern.
Undermining the price recovery this week, the BTC price continues in a bearish trend. With an intraday pullback of 1.11%, the BTC market price is down to $94,624.
This creates a second consecutive bearish candle and is testing the nearest crucial support level of $94,403. Meanwhile, it is also approaching the 50-day EMA line, priced at $93,170.
Amid the increasing bearish influence, the daily RSI line is down under the halfway level and warns of a downtrend continuation. Despite providing multiple bouncebacks, the 50-day EMA line remains the final support before the retest of the $90,000 support level.
Amid the increasing bearish influence, the crypto market in the last 24 hours has lost $251 million in liquidations, out of which $200 million are liquidated from the long-side investors. This reveals a market-wide selling spree, threatening a bearish start to 2025.
Amid the increasing chances of a bearish comeback to the $90K support level, multiple market analysts are supporting the bearish narrative. In a recent tweet by Ali Martinez, an independent analyst, multiple spokespersons are highlighting the bearish clouds over Bitcoin.
In a recent video, Tone Vays, a former Wall Street quant trader, is highlighting the current conditions in Bitcoin as cataclysmic. The analyst believes if Bitcoin starts to trade below the $95K level, it is going to turn very, very bad because it increases the possibility of Bitcoin extending the correction phase to the $73K level.
Likewise, a well-known technical analyst, Peter Brandt, has said that Bitcoin is making a broadening triangle pattern in the daily chart. The support level for this stands at the $90K support level.
In case BTC price breaks under this, a possibility of retesting the $70K levels is possible. The price chart estimates a drop to $76,614.
Despite the technical analysts believing short-term correction, Thomas Lee has strengthened his view on Bitcoin reaching $250K in 2025. However, Chartered Market Technician Mark Newton estimates Bitcoin to take a downswing to $60K before the parabolic rise.
And finally, Benjamin Coven, believes the BTC price is likely to flash crash to $60K near Donald Trump’s inauguration day.
The Bitcoin price, based on the on-chain data, reveals $70,000 as a potential drawdown target if BTC starts trading below $93,806. In an old tweet on December 22, Ali Martinez highlighted a key support zone between $93,806 and $97,041.
This is based on the UTXO Realized Price Distribution. If this critical demand area doesn’t hold up, the nearest significant support is present near the $70,085 level.
Amid the turning tables in the crypto landscape, some savvy investors have sent 33,000 BTC to exchanges over the past week. This is valued at $3.23 billion.
Meanwhile, others have also started to book profits when, on December 23 alone, $7.17 billion in BTC profits were realized.
Bitcoin faces critical support at $94,403 and the 50-day EMA at $93,170, with a break below potentially leading to a retest of $90K or even $70K, as highlighted by experts like Tone Vays and Peter Brandt.
While short-term bearish risks dominate, long-term optimism persists, with projections of a parabolic rise to $250K by 2025 from analysts like Thomas Lee. Traders should watch key levels closely to navigate the current uncertainty.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
