Bitcoin is at a crucial juncture, with top crypto analysts warning of a potential 15% correction that could see the price dip to around $90,000. Delve into the specifics of this technical analysis now.
According to crypto analyst DonAlt, Bitcoin is currently in a risky zone on the daily chart. He cautioned that if the price fails to hold above the crucial support range between $98,000 and $101,000, it could trigger a rapid 15% decline, bringing the price down to around $90,000.
What concerns him the most is Bitcoin’s recent movement, which briefly hit a near all-time high of $112,000 before dropping back to these support levels. DonAlt describes this move as a “fake breakout,” explaining that in a strong bull market, prices should generally continue to climb instead of falling back to old levels.
On the other hand, analyst Ali Martinez pointed out that Bitcoin’s Market Value to Realized Value (MVRV) ratio has just dropped below its 200-day moving average, indicating increasing selling pressure in the short term.
Historically, this type of setup has often preceded periods of temporary correction or consolidation for the cryptocurrency. Although the current price holds above $100,000, this shift in market dynamics urges traders to be cautious.
Despite this short-term volatility, DonAlt remains optimistic about the long-term prospects of Bitcoin, relying on analysis of weekly and monthly charts. “The weekly chart is strong, and the monthly chart is even stronger”, he stated. “We are not in a bad position in the long term, but currently, the daily seems weak.”
Currently, Bitcoin is trading around $103,728, showing a 1% decrease over the last 24 hours. Meanwhile, Bitcoin’s dominance in the cryptocurrency market continues to rise, now standing at 64.61%.
Gaston has been a writer for over 7 years and a passionate cryptocurrency enthusiast since 2020. He loves exploring the crypto ecosystem and is now dedicated to sharing his insights and discoveries through InvestX.
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