The New Year's rebound in the market turned into a reversal of the start of the year after Bitcoin (BTC) fell from the recently recovered $100,000 support into the $94,000 range. Amid the decline, an analyst shared his “cautiously optimistic” outlook for the price of BTC.
Related Reading
There is a risk that Bitcoin will go down to $74,000
On Tuesday, Bitcoin fell below $97,000, dragging the market into its first pullback of the year. BTC began 2025 traded around the $92,000 level but climbed around 6.5% in the following days.
After turning the $98,000 resistance into support over the weekend, Bitcoin jumped back above $100,000, reaching its highest price in weeks. However, BTC struggled to maintain this key support area, dipping 3% in an hour yesterday.
The digital currency has fallen another 2.5% in the past day, falling as low as $94,500 on Wednesday morning. Since then, BTC has moved between $94,800 and $95,600, briefly testing the $96,000 resistance.
Crypto analyst Ali Martinez has been investigated The fastest rate online BTC. In Risk X, the analyst noted that Bitcoin “broke the right shoulder of the head and shoulders pattern” on Monday, invalidating the bearish setup pattern.
However, the reversal “removed these gains, pulling BTC back under the right shoulder and managing bearish concerns,” as this pattern could trigger a correction to at least $78,000. Martinez also pointed to Bitcoin has fallen below the main demand area, between $95,400 and $98,400, where 1.77 million addresses received more than 1.53 million BTC.
The analyst suggested that the price drop could force these holders to “sell some BTC to reduce potential losses. ” He also noted that there is little resistance ahead of the major crypto brand, with only a minimum supply wall of 107,000 BTC between $104,700 and $105,770.
Nevertheless, the analyst warning that an increase in selling pressure that pushes the digital currency below the $92,000 mark “could spell trouble,” as it would “open the door to a steep drop, with little support to $74,000.”
“Therefore, the current market situation, from a macro perspective, is increasing the fear of a possible Bitcoin crash,” he said.
BTC price ready to bounce soon?
The analyst also shared a “cautiously bullish” view for BTC from a technical perspective. Martinez pointed out that TD Sequential gave a buy signal on Bitcoin's 4-hour chart, suggesting potential price upside. rebound if the price can hold the $93,500 support area.
In addition, he pointed out that traders on Binance “support Bitcoin,” since 61.28% of traders on the crypto exchange have open positions promising that the price will go up.
Martinez also noted that $35 million would be liquidated if the price of BTC goes back to $98,600, suggesting that market makers “could try to grab it”. Similarly, another liquid zone of $66 million is above $103,300.
Related Reading
However, the analyst stressed that Bitcoin needs to recover the $100,000 support to invalidate the bearish outlook and “set its sights on new all-time highs.” Martinez concluded that BTC could go back to $98,600 in the short term, but “the macro suggests caution. “
As of this writing, Bitcoin is trading at $94,500, a retreat of 3.3% in the daily period.
Featured image from Unsplash.com, Chart from TradingView.com
