Following a recent all-time high, Bitcoin has experienced a significant retracement of over 10%, dropping below $110,000 once again. This downward trend has carried over into the new month, with investors selling off to lock in profits. Despite some predicting a potential bottom, a crypto analyst believes that the Bitcoin crash is far from over and could continue to decline.
Anticipating a Drop to $93,000
The analysis by crypto analyst MMBTtrader recognizes the mounting pressure on Bitcoin’s price. After being rejected from $120,000, the cryptocurrency has fallen back to a critical support zone.
Currently, the $108,000 level has acted as a support, but with sellers dominating the market, this level may not hold for long. The analyst foresees further price declines, potentially triggering a cascading effect.
The market appears to be in need of a pause, with a trendline dating back to 2024 indicating a possible decline to $93,000. Even if Bitcoin reaches this level, the analyst expects a further breakdown to as low as $70,000.
Potential for a Price Surge
If bulls manage to maintain support and initiate a bounce, there is a chance of a price surge. Reclaiming the trendline above $117,000 could lead to a 30% increase, pushing the price beyond $137,000. However, the analyst remains cautious, foreseeing a higher likelihood of a breakdown. “I am thinking of breakout to the downside and more dump after that like red arrows maybe now with higher possibility,” MMBTtrader mentioned.
Featured image from Dall.E, chart from TradingView.com