Bitcoin Could Crash To $70,000, Warn Leading Financial Analysts
2024-12-27
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The recent rejection at the $100,000 has prompted a wave of warnings from leading financial analysts, who caution that Bitcoin could be poised for a significant pullback toward the $70,000 region or, in some cases, even $60,000. Ali Martinez (@ali_charts), a crypto analyst, compiled the viewpoints of several market veterans on X , offering a multi-perspective take on the likelihood of an impending correction.
Bitcoin Price Crash Incoming?
One of the voices in this discussion is Tone Vays, a well-known trader who has expressed grave concerns about Bitcoin’s trajectory. Vays conveyed that Bitcoin trading below $95,000 is “very, very bad” as it heightens the likelihood of a correction to around $73,000.
In a shared video, Vays elaborated, “We’re now opening the month day trading below $95,000, […] getting too close to the $92,000 range literally opens like Pandora’s box into a massive crash down to $73,000. Now, I’m not saying it’s going to crash $73,000. I’m saying the possibility has significantly increased that we can easily go to $73,000. You are sitting at the last line of support.”
Peter Brandt, another prominent analyst, added to the growing concern by discussing the formation of a “broadening triangle” in Bitcoin’s price chart. According to Brandt, this pattern could potentially project a retracement toward the $70,000 zone. Although Brandt was careful to clarify that his statements are not definitive predictions, he emphasized the increased possibility of such a movement.
“Hey trolls — this is not a prediction. Just always pointing out possibilities, not probabilities, not ‘certainties’. No screen shot is necessary, BTC right angled broadening triangle could project back into the $70,000s and a test of the parabolic modality,” Brandt stated.
Contrasting with these bearish viewpoints, Fundstrat maintains a more optimistic long-term perspective, predicting that Bitcoin could reach $250,000 by 2025. However, Fundstrat’s Global Head of Technical Strategy, Mark Newton, acknowledges the potential for short-term volatility, suggesting that Bitcoin might experience a downswing to $60,000 before embarking on its ascent.
In a video shared by Martinez, Fundstrat CEO Tom Lee elaborated on this outlook: “Bitcoin, one year from now, I think is something around $250,000. […] it is hyper volatile. People don’t like the volatility. Yeah, Mark Newton, our technician, thinks that the cycle of Bitcoin turns a little bit down early next year, so maybe Bitcoin gets to the $60,000s.”
Adding to the chorus of caution, Benjamin Cowen, CEO and Founder of Into The Cryptoverse, posits that Bitcoin’s price action could mirror that of the Nasdaq 100 (QQQ). According to Cowen, this alignment could precipitate a “flash crash” to $60,000, potentially coinciding with Donald Trump’s inauguration day.
From an on-chain analysis standpoint, Martinez confirms the bearish possibilities. He notes that if Bitcoin falls below $93,806, the path to $70,085 becomes increasingly plausible, describing the area below as “open air all the way down to $70,085.” Martinez identifies the critical support zone between $97,041 and $93,806, emphasizing that failure to maintain these levels could trigger a sharp decline.
He observes that market dynamics indicate some investors are preparing for such a downturn, evidenced by the transfer of over 33,000 BTC (valued at more than $3.23 billion) to exchanges in the past week. Additionally, profit-taking appears to be intensifying, with more than $7.17 billion in Bitcoin profits realized on December 23 alone. The proportion of Binance traders with open long positions on BTC has also decreased from 66.73% to 53.60%, suggesting a shift in market sentiment towards a more bearish stance.
Ultimately, Martinez underscores the importance of Bitcoin reclaiming the $97,300 support zone to invalidate the bearish forecasts. “Bitcoin recently broke below one of its most significant support zones at $97,300. So, for the bearish outlook to be invalidated, BTC must reclaim this critical area of support and, more importantly, sustain a daily close above $100,000,” he states.
Should Bitcoin manage to sustain a daily close above $100,000, Martinez posits the potential for a significant upswing, possibly reaching $168,500 based on the Mayer Multiple. However, the failure to do so leaves the door open for the predicted corrections to materialize.
At press time, BTC traded at $96,905.