Bitcoin (BTC) Market Experts Signal Concerns, Suggesting a Steep Correction May Be on the Horizon

As Bitcoin (BTC) hovers around $92,000 and the critical $100,000 resistance level, the cryptocurrency market is rife with speculation

As Bitcoin (BTC) continues to hover around the critical $100,000 resistance level, several crypto analysts have outlined potential scenarios for the cryptocurrency’s future movements.

Prominent crypto analyst Ali Martinez recently highlighted several perspectives from well-known analysts, suggesting that a steep correction might be on the horizon. According to Martinez, the market sentiment has turned bearish, with some analysts predicting a potential crash of Bitcoin to as low as $60,000.

Respected crypto trader Tone Vays warned that trading below $95,000 is “very, very bad,” as it heightens the probability of a correction toward $73,000. Similarly, technical analyst Peter Brandt pointed to a potential breakdown of a “broadening triangle,” projecting a retracement toward the $70,000 range.

Adding to the bearish outlook, Mark Newton of Fundstrat suggested that while Bitcoin could eventually reach $250,000 by 2025, a downswing to $60,000 is likely in the near term.

Another analyst, known as Intocryptoverse, speculated that Bitcoin might mirror the price action of the QQQ index offered by Invesco, with a flash crash potentially coinciding with President-elect Donald Trump’s inauguration on January 20.

From an on-chain perspective, the analysis indicates that if Bitcoin falls below $93,806, it could face open air down to $70,008, further highlighting the possibility of a correction.

Interestingly, over 33,000 Bitcoin, valued at approximately $3.23 billion, were transferred to exchanges over the past week, as savvy investors appear to be preparing for a bearish scenario. Moreover, traders realized over $7.17 billion in profits on December 23 alone.

Recent data from Binance shows a notable shift in trader sentiment, as the percentage of traders holding long positions in Bitcoin dropped from 66.73% to 53.60%. This decline reflects a growing caution among investors as Bitcoin recently broke below a significant support zone at $97,300.

For the bearish outlook to be invalidated, Martinez asserts that BTC must reclaim this critical support area and close above $100,000 on a daily basis. If it can achieve and maintain this level, he believes the cryptocurrency could embark on a new upward trajectory, potentially reaching as high as $168,500.

Despite the prevailing bearish sentiment, Martinez also presented a more bullish scenario. He suggested that a correction of 20% to 30% could actually set the stage for a stronger recovery.

According to his analysis, a 30% correction would see BTC plummet to approximately $65,000 for current trading prices, a level not seen since October. This correction could serve to reset market sentiment and lay the foundation for future growth.

At the time of writing, the market’s leading crypto trades at $94,560, posting losses of 2% and 3% on the 24-hour and weekly time frames, respectively.