Following a New Year surge, the market witnessed a retracement as Bitcoin (BTC) slipped from the $100,000 support to the $94,000 level. An analyst remains cautiously optimistic about BTC’s future price.
BTC Faces Risk of Drop To $74,000
Bitcoin fell below $97,000 on Tuesday, marking the first pullback of the year. Starting around $92,000, BTC saw a 6.5% increase over the next few days.
While briefly surpassing $100,000 after converting $98,000 into support, Bitcoin struggled to maintain this level and saw a 3% drop within an hour yesterday.
The cryptocurrency continued to decline, reaching $94,500 on Wednesday morning and fluctuating between $94,800 and $95,600, with a brief test of the $96,000 resistance. Analyst Ali Martinez analyzed BTC’s performance and noted the potential for a correction to $78,000 due to a breach of a key pattern and falling below a significant demand zone.
Martinez highlighted the lack of significant resistance for Bitcoin and the potential selling pressure that could lead to a steep drop below $74,000.
Possibility of BTC Price Rebound
Despite the bearish sentiment, the analyst provided a cautiously bullish outlook for BTC. With technical indicators suggesting a potential rebound if BTC maintains the $93,500 support level, Martinez also mentioned a bullish sentiment among traders on Binance.
The analyst also pointed out potential liquidation zones at $98,600 and above $103,300, indicating market makers’ interest in these price levels.
However, Martinez stressed the importance of reclaiming the $100,000 support to negate the bearish scenario and aim for new highs. The short-term forecast predicts a rebound to $98,600, but caution is advised considering the broader market trends.
As of now, Bitcoin is trading at $94,500, reflecting a 3.3% retracement in the daily timeframe.
