The market’s New Year rebound has transitioned into a start-of-year retrace as Bitcoin (BTC) dropped from the recently reclaimed $100,000 support level, settling into the $94,000 territory. Amid this decline, an analyst has shared a “cautiously bullish” outlook for BTC’s price.
Bitcoin Risks Crash To $74,000
On Tuesday, Bitcoin dipped below $97,000, marking the first significant pullback of the year. BTC began 2025 trading around the $92,000 mark but saw a 6.5% increase in the days that followed.
After successfully turning the $98,000 resistance level into support over the weekend, Bitcoin surged back above $100,000, reaching a peak not seen in weeks. However, BTC faced difficulties sustaining this key support zone, slipping 3% within an hour yesterday.
The cryptocurrency continued its downward trend, dropping another 2.5% within the past day and falling to a low of $94,500 on Wednesday morning. Currently, BTC is fluctuating between $94,800 and $95,600, having briefly tested the $96,000 resistance.
Crypto analyst Ali Martinez examined BTC’s recent performance, noting that Bitcoin had “breached the right shoulder of a head-and-shoulders pattern” on Monday, effectively invalidating the bearish formation.
However, this reversal retracted those gains, pulling BTC back below the right shoulder and reigniting bearish concerns, potentially signaling a correction to at least $78,000. Martinez further highlighted that Bitcoin has dropped beneath a key demand zone, between $95,400 and $98,400, where 1.77 million addresses acquired over 1.53 million BTC.
The analyst warned that this price drop might compel these holders to “sell some BTC to cut potential losses.” He also pointed out there isn’t significant resistance in sight for the premier cryptocurrency, with only a minor supply wall of 107,000 BTC situated between $104,700 and $105,770.
Despite the current conditions, the analyst cautioned that a surge in selling pressure pushing BTC below the $92,000 mark “could spell trouble,” potentially leading to a steep drop with little support lining up until $74,000.
“Thus, the present market landscape is reawakening fears of a possible Bitcoin crash,” he remarked.
BTC Price Set To Bounce Soon?
Ali Martinez also conveyed a “cautiously bullish” outlook for BTC based on technical analysis. He observed that TD Sequential indicated a buy signal on Bitcoin’s 4-hour chart, hinting at a possible price rebound if the price holds the $93,500 support level.
Moreover, he noted that traders on Binance are predominantly optimistic about Bitcoin, with 61.28% of all traders on the exchange with open positions anticipating an upward price movement.
Martinez indicated that $35 million would be liquidated if BTC’s price rebounds to $98,600, suggesting that market makers “may try to grab” it. Additionally, there’s an appreciable liquidation zone of $66 million above $103,300.
Nevertheless, the analyst underscored the need for Bitcoin to reclaim the $100,000 support to invalidate the bearish outlook and set sights towards new all-time highs. He concluded that BTC could rebound to $98,600 in the short term, yet the macro environment necessitates caution.
As of this writing, Bitcoin is trading at $94,500, reflecting a 3.3% retracement in the daily timeframe.
