Bitcoin Could Crash To $70,000, Warn Leading Financial Analysts
The recent drop below $100,000 resistance triggered a wave of warnings from leading financial analysts, who warned that Bitcoin could see a sharp pullback to the $70,000 area, and in some cases could even drop to $60,000. Ali Martinez (@ali_charts), cryptocurrency analyst, compiled Several market veterans weigh in on X, providing multiple perspectives on the likelihood of an impending correction.
Is a Bitcoin Price Plunge Coming?
One of the voices in the discussion was prominent trader Tone Vays, who expressed serious concerns about Bitcoin’s trajectory. Vays said it would be “very, very bad” for Bitcoin to trade below $95,000 as it increases the likelihood of a pullback to around $73,000.
In a shared video, Vays elaborated: “We’re now having monthly daily trading openings below $95,000, (…) getting too close to the $92,000 range is actually like a Pandora’s box, ultimately falling to $73,000 . Now, I’m not saying it’s going to plummet to $73,000. What I’m saying is that the likelihood that we could easily get to $73,000 has increased significantly.”
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Another prominent analyst, Peter Brandt, added to the growing concerns by discussing the formation of an “expanding triangle” on the Bitcoin price chart. According to Brandtthis pattern could retrace towards the $70,000 area. Although Brandt was careful to clarify that his statement was not a definite prediction, he emphasized that the likelihood of such a movement has increased.
“Hey trolls – this isn’t a prediction. Just always pointing out possibilities, not possibilities, not “certainties.” No screenshot needed, BTC right-angled expanding triangle can be projected back to $70,000, which is against the parabola A test of form,” Brandt said.
Contrary to these bearish views, Fundstrat maintains a more optimistic long-term view, predicting that Bitcoin could reach $250,000 by 2025. However, Mark Newton, Fundstrat’s global head of technical strategy, acknowledged the potential for short-term volatility, suggesting Bitcoin could rise. It experienced a decline to $60,000 before starting to rise.
In a video shared by Fundstrat CEO Martinez Tom Lee Elaborating on this outlook: “I think Bitcoin will be worth around $250,000 a year from now. (…) It’s very volatile. People don’t like volatility. Yes, our technical guy Mark Newton thinks Bitcoin will be around $250,000 early next year. The currency cycle will drop slightly, so Bitcoin may reach $60,000.”
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Benjamin Cowen, CEO and founder of Into The Cryptoverse, believes that Bitcoin’s price action could be similar to that of the Nasdaq 100 Index (QQQ), making people more cautious. Cowen said this correction could lead to a “flash crash” to $60,000, possibly with Donald Trumpinauguration day.
From an on-chain analysis perspective, Martinez confirmed the bearish possibility. He noted that if Bitcoin falls below $93,806, a path to $70,085 becomes increasingly plausible, describing the area below as “all the way down to $70,085.” Martinez identified key support areas between $97,041 and $93,806, stressing that failure to maintain these levels could trigger a sharp decline.
He observed that market dynamics indicate that some investors are bracing for such a downturn, as evidenced by the transfer of more than 33,000 BTC (worth more than $3.23 billion) to exchanges in the past week. Furthermore, profit-taking appears to be intensifying, with over $7.17 billion in Bitcoin profits being realized on December 23 alone.
The proportion of Binance traders holding long BTC positions also dropped from 66.73% to 53.60%, indicating that market sentiment has shifted to a more bearish stance.
Ultimately, Martinez stressed the importance of Bitcoin reclaiming the $97,300 support area to invalidate bearish predictions. “Bitcoin recently fell below one of the most important support areas at $97,300. Therefore, for the bearish outlook to be invalidated, Bitcoin must regain this key support area and, more importantly, sustain a daily close above $100,000. “
Martinez believes that if Bitcoin can sustain a daily close above $100,000, then Bitcoin could rise significantly to $168,500 based on the Mayer multiple. Failure to do so, however, leaves room for revisions of forecasts to materialize.
At press time, BTC was trading at $96,905.
Featured image created using DALL.E, chart from TradingView.com
