newsbtc.com
The market’s New Year rebound turned into a start-of-year retrace after Bitcoin ($BTC) dropped from the recently reclaimed $100,000 support into the $94,000 territory. Amid the drop, an analyst shared his “cautiously bullish” outlook for $BTC’s price.
Bitcoin Risks Crash To $74,000
On Tuesday, Bitcoin dropped below $97,000, dragging the market into the first pullback of the year. $BTC began 2025 trading 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 zone, dipping 3% in an hour yesterday.
The cryptocurrency has dropped another 2.5% in the past day, falling as low as $94,500 on Wednesday morning. Since then, $BTC has hovered between $94,800 and $95,600, briefly testing the $96,000 resistance.
Crypto analyst Ali Martinez examined $BTC’s recent performance. In an X threat, the analyst noted that Bitcoin had “breached the right shoulder of a head-and-shoulders pattern” on Monday, invalidating the bearish setup pattern.
However, the reversal “erased those gains, dragging $BTC back below the right shoulder and reigniting bearish concerns,” as this pattern could trigger a correction to at least $78,000. Martinez also pointed out that Bitcoin has fallen below a key demand zone, between $95,400 and $98,400, where 1.77 million addresses acquired over 1.53 million $BTC.
The analyst suggested the price drop could force these holders to “sell some $BTC to cut potential losses.” He also noted there isn’t significant resistance ahead for the flagship crypto, with only a minimal supply wall of 107,000 $BTC between $104,700 and $105,770.
Nonetheless, the analyst warned that a surge in selling pressure that pushes the cryptocurrency below the $92,000 mark “could spell trouble,” as it would open “the door to a steep drop, with little support until $74,000.”
“Therefore, the current market conditions, from a macro perspective, are reigniting fears of a potential Bitcoin crash,” he added.
$BTC Price Set To Bounce Soon?
The analyst also shared a “cautiously bullish” outlook for $BTC from a technical perspective. Martinez pointed out that TD Sequential presented a buy signal on Bitcoin’s 4-hour chart, suggesting a potential price rebound if the price can hold the $93,500 support zone.
Additionally, he highlighted that traders on Binance “are leaning bullish on Bitcoin,” as 61.28% of all traders on the crypto exchange with open positions are betting that the price will go up.
Martinez also noted that $35 million would be liquidated if $BTC’s price rebounds to $98,600, suggesting that market makers “may try to grab” it. Similarly, there’s another $66 million liquidation zone above $103,300.
However, the analyst emphasized that Bitcoin must reclaim the $100,000 support to invalidate the bearish outlook and “set its sights on new all-time highs.” Martinez concluded that $BTC could rebound to $98,600 in the short term, but “the macro suggests caution.”
As of this writing, Bitcoin is trading at $94,500, a 3.3% retrace in the daily timeframe.