Bitcoin price again sees heavy selling pressure after encountering rejection at $100K on Christmas. While bulls attempt to defend the $95,000 support levels, on-chain data indicates weakness in the face of rising exchange deposits. If Bitcoin were to lose its support, according to market analysts, it could fall to a value of $60,000 to $70,000 by the time Donald Trump takes office on January 20.
Bitcoin’s Key Support Levels Tested
The selling pressure on Bitcoin continued after the climb to the $100,000 level, sending the price of BTC back down to $95,000. Since Bitcoin’s price does not have enough ammo to continue the surge, on-chain data also reveals weakness.
According to prominent Crypto researcher Ali Martinez, the important support zone for Bitcoin is presently between $97,041 and $93,806. Additionally, he cautioned that Bitcoin might drop to $70,085, it’s last low if it can’t maintain its current demand area.
Bitcoin Reserves Hit All-Time High
In addition, the Bitcoin exchange reserves have grown significantly, reaching a new all-time high of $100,000, which is a cause for concern. According to Crypto expert Ali Martinez, astute investors appear to be gearing up for a possible gloomy situation. Over 33,000 Bitcoins worth over $3.23 billion have been sent to exchanges in the last seven days. There may be selling pressure in the market if this trend continues.
However, profit booking for Bitcoin increased dramatically during the previous week. During the holiday season, there was a lot of market activity and profit-taking, as Bitcoin investors made almost $7.17 billion in a collective profit on December 23, according to Martinez.
Also, traders aren’t very bullish about Bitcoin right now, according to derivatives data. The proportion of Binance traders with long Bitcoin ($BTC) positions has dropped significantly, from 66.73% to 53.60%.
Bitcoin Battles to Reclaim Support
While 1.51 million wallets bought almost 1.49 million BTC on Christmas day, the price of Bitcoin broke through a critical support level of $97,300, according to analyst Ali Martinez. Bitcoin has to regain this vital support zone and, even more crucially, close the day above $100,000 if negative sentiment is to be reversed. According to Martinez, the Mayer Multiple predicts that the price of Bitcoin might rise to $168,000 if bulls can hold the $100,000 support level.
Nevertheless, the price of Bitcoin fell 2.2% Wednesday, changing hands at $96,038. The market capitalization was $1.9 trillion, while the trading volume for the day surged 24% to $46 billion. There is a $55 million 24-hour liquidation and a $44 million extended liquidation.
Bitcoin Faces Potential Drop, Altcoins Surge
If Bitcoin breaks below the critical $95,000 support level, several market analysts anticipate more declines for the cryptocurrency. When Bitcoin ($BTC) falls below the $95,000 mark, Crypto expert Tone Vays becomes worried. To Vays, this is “very, very bad” since it greatly increases the possibility of a decline towards $73,000. According to seasoned trader Peter Brandt, Bitcoin’s price might soon descend from a “broadening triangle” pattern. If this happens, Brandt predicts a possible price retracement toward the $70,000 area.
However, Fundstrat is certain that Bitcoin’s price will hit $250,000 by 2025; therefore, they are upbeat. Market analyst Mark Newton, however, predicts that a dip to $60,000 may happen before that rally. Lastly, IntoTheCryptoVerse’s Benjamin Cowen has predicted that Bitcoin’s (BTC) price might mirror the Invesco QQQ Trust (QQQ) price. In such a case, there might be a precipitous drop to $60,000 around the time of Donald Trump’s inauguration.
Altcoins are seeing an uptick in investment as Bitcoin’s price might plummet. Experts in cryptocurrency predict that altcoins may have a robust rebound in the next weeks and months. Even though many investors may appear to have lost faith, altcoins may have a stronger rebound.
Final Thoughts
According to several analysts, there is a lot of selling pressure on Bitcoin right now, and the price could go below important support levels—$60,000 to $70,000. Concerns are further heightened by the growth of exchange reserves and the decline in optimistic attitude. There will likely be short-term volatility, but Bitcoin’s long-term prospects remain bright. Altcoins, attracting more attention due to Bitcoin’s problems, may experience more robust recoveries in the weeks ahead. What happens next for Bitcoin in the market depends on how it maintains its support zone.
