Bitcoin (BTC) Price Prediction: Will the BTC Price Plunge Below $85,000?

The bearish dominance over Bitcoin and crypto markets has escalated, dragging the price below $89,000. The market sentiments have plunged to 25 and reached levels they remained at during the FTX crash.

United States President Donald Trump has re-instigated the ‘Tariff war’ by imposing a 25% tariff on Canada and Mexico. This has hit the stock and crypto markets hard, with the global market capitalization of cryptos dropping below $3 trillion.

Bitcoin’s price has plunged below $89,000 for the first time since the November 2024 rise. The market sentiments have turned extremely bearish, suggesting more downfall is expected to occur that may drag the BTC price below the crucial support.

Will The BTC Price Plunge Below $85,000?

Bitcoin and the crypto markets have come under increasing bearish pressure, with the price dropping below $89,000. Market sentiments have plummeted to 25, reaching levels last seen during the FTX crash. Moreover, the price has reached the neckline of a large bearish pattern, suggesting a further bearish outlook for the star token.

BTC’s daily chart shows that the price has dropped below the neckline of a large ‘M-shaped’ or double-top pattern. Gaussian Channel has also turned bearish after remaining bullish since October 2024. Also, the RSI has reached the lower levels, indicating a possible entry into the oversoldゾーン. Daily RSI has not dropped into the oversoldゾーン since August 2023, and if the panic selling continues, the BTC price is likely to drop to support around $80,000.

Is The Bitcoin Bull Run Over?

In the longer time frame, the Bitcoin price shows some potential for a strong rebound, but the rally is likely to remain under bearish influence. Moreover, the token is echoing a previous pattern, indicating that a strong rebound is imminent. However, the price needs to enter the demand zone, which is about 3%-4% lower than the current levels.

In the longer time frame, BTC’s price is once again trading within a descending parallel channel, as it did in the first few weeks of 2024. The price maintained its volatility within the pattern and marked interim lows below $54,000, triggering a large rally to a new ATH above $109K. A similar pattern is seen currently, where the price is approaching the support of the channel, which is just below $85,000. RSI is deflating and could drop to support at 44.39, while the weekly MACD indicates an increase in selling pressure.

However, as the MACD remains in a positive range, a quick rebound is expected, which could ease the selling pressure. With this, the RSI is also likely to defend the support and trigger a rebound, which could initiate a recovery phase. But a breakout from the channel could trigger a strong bull run, paving the way for a new Bitcoin (BTC) price ATH, possibly above $112,000.