As Bitcoin (BTC) hovers around the $90,000 mark, technical analysts are raising concerns over a potential downward correction to $70,000. Notably, cryptocurrency analyst Ali Martinez highlighted a bearish flag pattern on a 12-hour chart, pointing to weakening momentum and a potential drop.
Bitcoin’s Current Market Dynamics
According to Martinez, Bitcoin’s recent price movement is forming a wedge structure, suggesting a high risk of a breakdown. This pattern emerged after Bitcoin’s sharp pullback from highs nearing $95,000, with ongoing resistance at mid-$90,000 levels. If the bearish flag confirms, technical estimates place Bitcoin’s potential support target near $70,000—its deepest correction in months.
Key Levels to Watch
Adding to the cautious sentiment, analyst Michaël van de Poppe emphasized the significant role of the $92,000 resistance level in determining Bitcoin’s short-term trajectory. If Bitcoin clears this threshold, it could spark renewed momentum toward the coveted $100,000 mark. Conversely, failing to hold $90,000 as support may lead to corrections down to the $78,000-$82,000 range, especially with looming macro events such as the Federal Reserve’s upcoming policy decision.
Why Traders and Investors Should Stay Vigilant
The cryptocurrency market remains notably volatile, with unpredictable external factors often influencing price movements. Rising liquidity above the current market price increases the stakes for a potential breakout, while downside risks remain prominent amid broader market stagnation. With global interest in Bitcoin surging, this remains a pivotal time for both traders and long-term investors to monitor key support and resistance levels.
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