Bitcoin in Trouble? Analysts Warn of Potential Pullback to $60K

Bitcoin is facing potential trouble after two weeks of declining prices, with analysts warning that the flagship cryptocurrency might experience a significant pullback, possibly dropping to as low as $60,000. Currently, Bitcoin is trading close to $95,000, but its market cap has fallen to $1.9 trillion, with a 2.5% drop in the last 24 hours, marking a 3.7% decrease over the last two weeks.

Potential for a Price Pullback

While bulls are attempting to defend the critical $95,000 support level, on-chain data and market analysts are raising concerns. Some analysts believe that Bitcoin could drop to $60,000 by January 19, around the time of Donald Trump’s inauguration. This speculation is based on investor behavior and market sentiment, including the movement of large amounts of Bitcoin to exchanges.

Prominent crypto analyst Ali Martinez pointed out that more than 33,000 BTC, worth over $3.23 billion, had been moved to exchanges over the past week. This suggests that many investors may be preparing to sell, anticipating a bearish scenario. Additionally, December 23 saw a significant surge in profit-taking, with Bitcoin holders realizing over $7.17 billion in profits.

Derivative Traders Less Bullish

Derivative market activity also reflects a shift in sentiment. The percentage of traders taking long positions on Bitcoin has dropped significantly, from 66.73% to 53.6%. According to Martinez, Bitcoin’s key support zone lies between $93,806 and $97,041. If this zone fails to hold, a drop to as low as $70,085 could be on the horizon.

Concerns of a Deeper Correction

Several other crypto experts, including Tone Vays and Peter Brandt, have expressed concerns that a fall below the $95,000 support level could trigger a deeper correction. Vays believes that such a fall could lead to a sharp decline to around $73,000. Brandt has suggested that Bitcoin is at risk of breaking down from a “broadening triangle,” a bearish technical pattern, which could also lead to a drop near $70,000.

Analysts Mark Newton and Benjamin Cohen have warned that the price could even dip to the $60,000 range in the short term. Cohen speculates that Bitcoin’s price may follow patterns seen in other assets, experiencing a crash around significant political events, such as Trump’s inauguration.

A Bullish Case for Bitcoin

Despite the negative outlook from some analysts, there are also those who remain optimistic about Bitcoin’s future. Georgii Verbitskii, founder of TYMIO, believes that the price will not experience a severe downturn, even in the worst-case scenario. He predicts that Bitcoin might only drop to around $89,000, citing strong institutional backing and increased activity in the market.

Pseudonymous trader Titan of Crypto anticipates a correction to around $87,000 before Bitcoin heads toward a potential target of $110,000. Another analyst pointed out that Bitcoin is in the process of completing the third Elliott Wave count, which is typically the largest wave, and has set a target of $127,000.

Whale Activity and Market Sentiment

In its latest analysis, research firm Santiment observed that crypto whales are actively moving stablecoins to exchanges, signaling potential bullish activity in the near future. While this doesn’t guarantee immediate capital deployment, Santiment sees this as a positive sign as the year comes to a close.

As of press time, Bitcoin was down 2.1%, trading at $96,464 per coin. Despite the concerns about a potential pullback, there are still significant hopes for Bitcoin’s long-term growth.