Bitcoin price fell as low as $95,000 as on-chain data and market analysts turned bearish. Some market analysts predict that Bitcoin will collapse by Donald Trump’s inauguration on 19 January.
On-chain data signals a collapse for Bitcoin price!
As you follow on Kriptokoin.com, Bitcoin faced selling pressure after rising to $ 100,000 levels. With the intensification of the pressure, the Bitcoin price once again fell to $ 95,000. On-chain data also shows weakness as there is not enough ammunition for Bitcoin to continue its rally. Popular crypto analyst Ali Martinez notes that Bitcoin’s critical support zone is currently between $97,041 and $93,806. He also predicts that if Bitcoin cannot hold this demand area, it will see a sharp decline to $ 70,085.
Increase in stock market reserve puts pressure on Bitcoin price
Another worrying issue was the increasing BTC exchange reserves as the Bitcoin price rose to an all-time high of $ 100,000. Crypto analyst Ali Martinez predicts that savvy investors are preparing for a potential bearish scenario. Last week, more than 33,000 Bitcoins worth over $3.23 billion flowed into exchanges. This movement points to increased caution and possible selling pressure in the market.
On the other hand, profit booking for BTC has also increased over the past week. On 23 December, Bitcoin traders collectively took over $7.17 billion in profits, Martinez reported. Thus, underlining significant market activity and profit-taking during the holiday period. In addition, derivatives data shows that investors are not optimistic about Bitcoin in the near term. The percentage of traders holding long positions on Bitcoin (BTC) on Binance fell sharply. This indicator fell from 66.73% to 53.60%.
What are the chances of BTC rising to a bull rally?
According to analyst Ali Martinez, on Christmas Day, the Bitcoin price broke through an important support level of $97,300, where 1.51 million wallets collectively bought about 1.49 million BTC. For the downward trend to reverse, Bitcoin needs to retake this important support zone. Also, more importantly, it needs to make a daily close above the $ 100,000 level. Martinez also adds that if Bitcoin bulls manage to maintain $ 100,000 support, the BTC price could rise as high as $ 168,000 according to Mayer Multiple.
Analysts predict BTC will collapse with Trump’s inauguration
Many analysts predict more negativity for Bitcoin if it loses the critical support of $ 95,000. Crypto analyst Tone Vays expresses his concern that Bitcoin is trading below the critical $ 95,000. Vays says it significantly increases the likelihood of a correction towards $ 73,000. Therefore, he warns that such a move is ‘very, very bad’.
Experienced trader Peter Brandt warns that the Bitcoin price may be on the verge of breaking out of the ‘expanding triangle’ pattern. If this happens, Brandt suggests that the price will experience a pullback towards the $70,000 region. According to market expert Mark Newton, Bitcoin will see a pullback to $60,000 before breaking out. Finally, Benjamin Cowen of IntoTheCryptoVerse says Bitcoin will follow a price pattern similar to the Invesco QQQ Trust (QQQ). If this happens, there may be a sudden drop to $ 60,000 with the inauguration of Donald Trump.
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