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The cryptocurrency market is facing renewed volatility and uncertainty following recent events Bitcoin price collapse Under the $100,000 mark. As a result, the cryptocurrency analyst did just that subscriber A very long X-shaped post (formerly Twitter) explaining what to expect after such a big drop. He warns of critical levels that must be monitored Selling pressure intensifiedNoting that macro and technical indicators paint a mixed picture of Bitcoin’s price path in the short term.
Key levels to watch after the Bitcoin price collapse
According to prominent cryptocurrency analyst Ali Martinez, Bitcoin price is once again trading below $100,000 after surpassing that milestone earlier this week. Martinez open That the previous day, Bitcoin broke through the right shoulder of Head and shoulders patterncompletely invalidating the bearish setup at the time. However, in just 24 hours, the cryptocurrency erased these significant gains, pushing its price back below the right shoulder of the technical pattern and Reignite bearish sentiment.
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With huge Crash less than $100,000Bitcoin has now fallen significantly below the key demand zone between $95,000 and $98,000, an area with a population of about $1.77 million. Wallet addresses Bought over 1.53 million Bitcoins, worth over 141.3 billion at the current market price.
While many investors typically buy and hold Bitcoin for profit, the recent collapse in Bitcoin prices has raised concerns that owners of the 1.77 million wallet addresses may be forced to… Sell their property To reduce potential losses. Martinez warns that increasing selling pressure could push Bitcoin’s price below $92,000, which could lead to a sharper and faster decline, with limited support until it reaches the $74,000 mark. Notably, the analyst describes the drop below $92,000 as a “free fall zone,” meaning that Bitcoin may continue to collapse as it continues. Panic selling intensifies Liquidity dries up.
Adding to the ongoing uncertainty, Bitcoin’s reversal under the right shoulder of a head and shoulders pattern, combined with current bearish market conditions, has reignited fears, leaving many investors bracing for uncertainty. Deeper price collapse.
Recovery in sight or more pain to come?
Despite Bitcoin’s current bearish outlook, Martinez assures members of the cryptocurrency community that a price recovery is possible. The analyst revealed that Bitcoin’s TD Sequential indicator recently triggered a buy signal on the 4-hour chart, indicating… The possibility of price recovery and recovery It may be underway.
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Interestingly, Binance traders Still bullish on Bitcoin, this optimistic sentiment points to a short-term recovery towards $98,600, a price level with a $35 million liquidation zone that market makers covet. Martinez highlights the continued breakout to the upside $100,000 mark It is crucial to invalidating Bitcoin’s current bearish outlook and paving the way for New all-time highs.
However, if Bitcoin fails to regain this psychological level and falls below $92,000, it risks falling further, potentially correcting towards new lows in the range between $78,000 and $74,000. As of the time of writing, Bitcoin is trading at $94,154, meaning a drop into the lows of this range would represent a massive 17.16% to 21.41% decline.
Featured image created with Dall.E, chart from Tradingview.com