Bitcoin Crashing: Is It a Sign of Falling to $73,000?

Bitcoin has dropped more than 8.5% over the past four days after rising back above $100,000 earlier this week. This decline has raised the question of whether this level is the local peak of the BTC price, and if so, how low the Bitcoin price could drop in the coming days.

Bitcoin price may drop to find support at $90,000 The latest downward trend of Bitcoin has led market analysts to believe that prices may retest around $90,000. “Bitcoin has dropped below the 97-95K support level yesterday, reaching the lowest level within range,” Bitcoin analyst AlphaBTC stated in a post on X on January 9th. The big question now is whether it has completed or is just cooling off a bit before reaching the $90,000 low? The analyst said that the price of BTC could rise back from $90,000, but they "will have to assess the situation as the price continues to change". The chart below shows that if the support level of $90,000 is broken, Bitcoin could drop to the $88,600 and $87,500 zones.

The Emperor analyst also shares a similar view, stating, "Leverage is gradually being removed from Bitcoin", which could push the price up to $90,000, where "a good recovery is expected". MN Capital founder Michael van de Poppe predicts that the price of Bitcoin will drop to a low of $90,000 to $92,000, while also noting that another attractive price level is around $85,300. "Liquidity is likely to decrease below the previous low before rising again."

Julio Moreno, head of research at CryptoQuant, pointed out that unrealized profits of on-chain traders have significantly decreased amid Bitcoin's correction, adding,"This is a healthy sign after the price surge pushed it above $100,000." According to Moreno, Bitcoin's short-term price target is around $88,000, which is the actual price level for traders. The actual price of the traders (pink line, price support level in the rising market) is now $88,000.

Bitcoin's H&S Pattern Aiming For $73,000 Target From a technical standpoint, the price of Bitcoin has formed a head and shoulders (H&S) pattern on the daily chart, as noted by veteran trader Peter Brandt. In his latest analysis of Bitcoin on X, Peter explains that although the main trend of BTC is still upward, the price movement is forming a head and shoulders pattern on the daily chart. This model can push the price up to 73,000.

Another analyst, Micro2Macr0, also sets a similar target for reduction, as he believes that if the price of Bitcoin drops to $90,000, this level will not hold, paving the way for further losses. Micro2Macr0 sets lower targets at $84,885 and $72,962, respectively, corresponding to the simple moving averages of 100 days and 200 days. For trader and analyst Aksel Kibar, the final defense threshold for Bitcoin is at $73,700, around the highest historical price of BTC, this price may limit the decline of BTC price.

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