Bitcoin (BTC) is struggling to break out of key resistance levels, and uncertainty over the market continues. A crypto analyst is warning that the asset could fall below $90,000 based on technical indicators. Analyst Ali Martinez highlighted that Bitcoin is forming a head and shoulders pattern on the hourly timeframe. This classic bearish pattern usually signals that the price could change direction. As such, Bitcoin is currently trading between $94,000 and $95,000. However, it is just above the critical support level of $93,000.
Will Bitcoin Drop Below $90,000?
Despite the possibility of further declines, Martinez suggests that if Bitcoin loses the $93,000 support, it could drop to the demand zone around $91,000. Furthermore, if these levels are reached, it will strengthen the expectation of further declines among investors. In addition, it will also weaken Bitcoin’s hopes for a $100,000 target.
However, despite the technical indicators, some investors still remain optimistic and expect Bitcoin to rally, especially those who believe that price action at these levels could create an opportunity for recovery.
Hopes Continue Towards $100,000
Some analysts believe that Bitcoin still has the potential to reach $100,000. For example, Michaël van de Poppe suggests that Bitcoin will gain new momentum if it breaks $98,000. More importantly, breaking this level will take the asset to the “magic $100,000 zone.” Van de Poppe said the following on the subject:
BTC is currently waiting to break $98,000. If that happens, we could be on track to reach $100,000.
The influence of institutional investors on Bitcoin is increasing day by day. For example, as we reported at Kriptokoin.com , MicroStrategy continues to increase its Bitcoin assets, and this creates great confidence in the market. The company purchased 15,400 more BTC for $ 1.5 billion. Thus, it increased its total Bitcoin assets to 402,100 BTC. This move clearly shows that institutional confidence is still strong. In addition, another notable development was Microsoft’s decision to add Bitcoin to its balance sheet. The company’s shareholders will vote on this decision on December 10.
Bitcoin Price Analysis
Bitcoin is up 1.7% on the week despite a 1.3% loss on a daily basis. Moreover, Bitcoin staying between $90,000 and $95,000 could determine the direction of the market in the short term.
As a result, Bitcoin’s current technical structure should be monitored carefully and investors should focus on support and resistance levels in this process. In particular, in the coming weeks, price action seems to be concentrated on these critical levels. Thus, the future direction of the market can be understood more clearly.
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