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The price of Bitcoin recently achieved a huge milestone, crossing the $100,000 threshold for the first time in its history. While this breakout is a major achievement for Bitcoin price, it also raises questions Where does it go from here?.
The consensus among many analysts is for Bitcoin’s bullish price movement to continue. However, one cryptocurrency analyst on TradingView issued a stark warning, calling this price point “dangerous territory.” According to their technical forecast, reaching $100,000 could cause a significant correction in Bitcoin price up to the $72,000 level.
Why $100,000 could be a turning point for Bitcoin’s price
After four failed attempts to break the $100,000 barrier, Bitcoin has finally broken through the psychological threshold and it is… Now open to an uncharted price zone. Although the price of Bitcoin fell below $100,000 in the following hours, Many investors are still optimistic, Viewing this bounce as a temporary setback and believing that Bitcoin’s journey above $100,000 is not over yet.
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But optimism is met with a contradictory perspective From the analysis From TradingView, which offers a more cautious and bearish outlook. The analyst highlights the $100,000 level as a “magnet” that has been constantly attracting price activity over the past few weeks, acting as an important area of attraction and resistance. With this in mind, the analyst’s forecast is for a bearish price movement, essentially expecting a retest of the $94,000 level. From here, the analyst expects a break in the market structure (MSB), which in turn will lead to a broader correction in the Bitcoin price.
It is interesting that the analyst predicted Which broke below $94,000 The price level will lead to a retest of $88,000. In case Bitcoin breaks below the $88,000 support level, the analyst expects further price declines that would push Bitcoin price towards an ideal target area just above $72,200.
Bullish sentiment outweighs bearish sentiment
If the bearish scenario outlined by the analyst comes true, it could plunge the cryptocurrency market into another bear market, as other cryptocurrencies mirror Bitcoin’s downward trajectory and erase recent price gains.
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However, this remains an expectation rather than a prediction Evaluate current crypto market dynamics. Currently, the cryptocurrency market continues to enjoy bullish sentiment, as evidenced by the Fear and Greed Index, which currently stands at an extreme greed level of 81. A few analysts have suggested that the Bitcoin price may still have room to rise, with some speculating. Potential highs near $140,000.
At the time of writing, Bitcoin was trading at $98,350. Interestingly, the recent break above $100,000 led to a retest of $94,000 in the last 24 hours. However, Bitcoin price bounced from $94,000 instead of breaking below. Despite this recovery, the leading cryptocurrency may not be out of the woods yet.
Featured image created with Dall.E, chart from Tradingview.com