The new year’s market rebound turned into a start-of-year correction after Bitcoin (BTC) fell from the recently restored support of $100,000 to the $94,000 region. Amid the decline, one analyst shared his “cautiously bullish” forecast for the BTC price.
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Risks of Bitcoin collapsing to $74,000
On Tuesday, Bitcoin fell below $97,000, dragging the market into its first decline of the year. BTC started 2025 trading around the $92,000 level but rose nearly 6.5% in the following days.
After turning $98,000 resistance into support over the weekend, Bitcoin jumped back above $100,000, hitting its highest price in weeks. However, Bitcoin struggled to hold this key support area, falling 3% within one hour yesterday.
The cryptocurrency fell another 2.5% in the past day, falling to a low of $94,500 on Wednesday morning. Since then, Bitcoin has hovered between $94,800 and $95,600, briefly testing the $96,000 resistance level.
Cryptocurrency analyst Ali Martinez Checked it Recent BTC performance. In Threat
However, a reversal “erases those gains, pulling Bitcoin below the right shoulder and reigniting bearish concerns,” as the pattern could lead to a correction to at least $78,000. Martinez also noted that Bitcoin has fallen below the key demand zone, between $95,400 and $98,400, with 1.77 million addresses holding more than 1.53 million BTC.
The analyst noted that falling prices may force these holders to “sell some Bitcoin to reduce potential losses.” He also noted that there is no significant resistance to the major cryptocurrency, with a minimum supply of 107,000 BTC between $104,700 and $105,770.
However, the analyst warned that a surge in selling pressure that pushes the cryptocurrency below the $92,000 level “could spell trouble,” as it would open “the door to a sharp decline, with little support until $74,000.”
“Therefore, current market conditions, from a macro perspective, are reigniting fears of a possible Bitcoin collapse,” he added.
Is BTC price set to bounce soon?
The analyst also shared a “cautiously bullish” outlook for BTC from a technical perspective. Martinez noted that TD Sequential provided a buy signal on the four-hour chart for Bitcoin, indicating a potential price recovery if the price can maintain the $93,500 support area.
Additionally, he highlighted that traders on Binance are “bullish on Bitcoin,” with 61.28% of all traders on the cryptocurrency exchange with open positions betting that the price will rise.
Martinez also noted that $35 million would be liquidated if Bitcoin’s price rebounds to $98,600, suggesting that market makers “may try to grab it.” Likewise, there is another $66 million liquidation area over $103,300.
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However, the analyst stressed that Bitcoin must reclaim the $100,000 support to negate the bearish outlook and “set its sights on new all-time highs.” Bitcoin may rebound to $98,600 in the short term, but “macroeconomics are signaling caution,” Martinez concluded.
As of this writing, Bitcoin is trading at $94,500, a 3.3% retracement on the daily time frame.
Featured image from Unsplash.com, chart from TradingView.com