Bitcoin Eyes Rebound To $98,600 But Analyst Suggests Caution
The market’s New Year’s rally turned into a year-of-year retracement after Bitcoin (BTC) fell from recently reclaimed support at $100,000 to the $94,000 area. Amid the decline, one analyst shared his “cautiously bullish” outlook on Bitcoin prices.
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Bitcoin risks falling to $74,000
Bitcoin fell below $97,000 on Tuesday, dragging the market into its first correction this year. Bitcoin start 2025 was trading around $92,000 but rose by around 6.5% in the following days.
After turning resistance at $98,000 into support over the weekend, Bitcoin rallied back above $100,000, reaching its highest price in weeks. However, BTC struggled to maintain this key support area, falling 3% in an hour yesterday.
The cryptocurrency has fallen another 2.5% over the past day, falling to $94,500 on Wednesday morning. Since then, BTC has been hovering between $94,800 and $95,600, briefly testing the $96,000 resistance.
Cryptocurrency Analyst Ali Martinez checked BTC’s recent performance. In X Threat, analysts noted that Bitcoin “broke out of the right shoulder” of a head-and-shoulders pattern on Monday, invalidating the bearish setup pattern.
However, this reversal “erased those gains, dragging BTC back below the right shoulder and reigniting bearish concerns” as the pattern could trigger a pullback to at least $78,000. Martinez also noted that Bitcoin has fallen below a key demand area between $95,400 and $98,400, with 1.77 million addresses purchasing more than 1.53 million Bitcoin.
The analyst said that the price drop may force these holders to “sell some Bitcoin to reduce potential losses.” He also noted that the flagship cryptocurrency has no major resistance going forward, just a minimum supply wall of 107,000 BTC between $104,700 and $105,770.
Nonetheless, analysts warn A surge in selling pressure pushing the cryptocurrency below $92,000 “could spell trouble” as it would open the door to “a sharp decline with little support until $74,000.”
“So from a macro perspective, current market conditions are reigniting concerns about a potential collapse of Bitcoin,” he added.
Is BTC price about to rebound?
The analyst also shared a “cautiously bullish” outlook for BTC from a technical perspective. Martinez noted that TD Sequential issued a buy signal on Bitcoin’s 4-hour chart, hinting at the underlying price rebound If the price can hold the $93,500 support area.
Additionally, he highlighted that Binance traders “tend to be bullish on Bitcoin,” as 61.28% of all open traders on the cryptocurrency exchange are betting that the price will rise.
Martinez also noted that if BTC prices rebounded to $98,600, $35 million would be liquidated, indicating that market makers “may try to snatch” it. Likewise, there is another $66 million liquidation zone above $103,300.
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However, the analyst stressed that Bitcoin must regain support at $100,000 to invalidate the bearish outlook and “set its sights on new all-time highs.” Martinez concluded that Bitcoin could rebound to $98,600 in the short term, but “the macro picture suggests caution.”
At the time of writing, Bitcoin is trading at $94,500, retracing 3.3% on the daily time frame.
Featured image from Unsplash.com, chart from TradingView.com
