Bitcoin chart shows ‘diamond pattern’ with $96K target — What kicks off the downside?
2025-01-24
Category: None

Bitcoin is enjoying a day of bullish price action, but any disappointment related to the markets’ anticipation of a crypto-related executive order from President Trump on Jan. 23 could trigger a correction in BTC (BTC) price. 
Some analysts believe Bitcoin price could be headed to a correction below $96,000, based on emerging technical chart patterns, especially as markets remain increasingly sensitive to tightening economic conditions in the United States.
Bitcoin may correct to $96,000 based on “diamond pattern”
Bitcoin's BTCUSD price may be poised to a correction below $96,000, according to the “diamond” technical chart pattern, which indicates a momentum reversal for the underlying asset.
These chart patterns occur at local price tops or bottoms, but may only represent a temporary trend reversal, wrote crypto trader Blackmore, in a Jan. 22 X post:

Bitcoin may see a reversal or lack of significant momentum for the next few months, wrote Ki Young Ju, the founder and CEO of CryptoQuant, in a Jan. 22 X post:

Ju’s predictions are based on the Bitcoin P&L Index, a momentum indicator that incorporates three key metrics to determine the optimal Bitcoin allocation strategy and deliver lower drawdowns for investors.
Can Bitcoin maintain $101k key support?
Bitcoin may avoid further downside as long as it remains above the key $101,000 support, according to popular crypto analyst Rekt Capital.
“Bitcoin once again failed to daily close above the $106,000 range high resistance,” the analyst wrote in a Jan. 23 X post:

A Bitcoin dip below $101,000 could introduce significant market volatility, as it would trigger over $1.34 billion worth of cumulative leveraged long liquidations across all exchanges, according to CoinGlass data.
Additionally, Bitcoin price may also be pressured by concerns over tightening monetary policy, according to Ryan Lee, chief analyst at Bitget Research. The analyst told Cointelegraph:

Markets are now expecting the first US interest rate cut to occur on June 18, according to the latest estimates of the CME Group’s FedWatch tool.