The crypto market faces renewed volatility and uncertainty following the recent Bitcoin price crash below the $100,000 mark. As a result, a crypto analyst has shared a rather lengthy X (formerly Twitter) post outlining what to expect following this significant decline. He warns of critical levels to watch as selling pressures intensify, noting that both macro and technical indicators paint a mixed picture of Bitcoin’s short-term price trajectory.
Key Levels To Watch After The Bitcoin Price Crash
According to prominent crypto analyst Ali Martinez, the Bitcoin price is once again trading below $100,000 after surpassing this milestone earlier this week. Martinez revealed that in the previous day, Bitcoin breached the right shoulder of a Head and Shoulder pattern, completely invalidating its bearish setup at the time. However, in just 24 hours, the cryptocurrency erased these significant gains, pushing its price back below the right shoulder of the technical pattern and reigniting bearish sentiment.
With its massive crash below $100,000, Bitcoin has now plummeted significantly below the key demand zone between $95,000 and $98,000, an area where approximately 1.77 million wallet addresses had purchased more than 1.53 million BTC, worth over 141.3 billion at the present market rate.
While many investors typically buy and hold BTC for profit, the recent Bitcoin price crash has raised concerns that owners of the 1.77 million wallet addresses may be forced to sell off their holdings to cut down potential losses. Martinez warns that rising selling pressures could push the Bitcoin price below $92,000, potentially triggering an even sharper and more rapid decline, with limited support until it reaches the $74,000 mark. Notably, the analyst labels a drop below $92,000 a “free fall territory,” meaning Bitcoin could continue to crash as panic selling intensifies and liquidity dries up.
Adding to the ongoing uncertainty, Bitcoin’s reversal below the right shoulder of the Head and Shoulders pattern, combined with current bearish market conditions, has reignited fears, leaving many investors bracing for a deeper price crash.
Rebound On The Horizon Or More Pain Ahead?
Despite Bitcoin’s current bearish outlook, Martinez reassures crypto community members that a price rebound is possible. The analyst disclosed that Bitcoin’s TD sequential indicator recently flashed a buy signal on the 4-hour chart, suggesting that a potential price recovery and rebound may be underway.
Interestingly, Binance traders remain bullish on Bitcoin, with this optimistic sentiment pointing to a short-term recovery toward $98,600, a price level with a $35 million liquidation zone that market makers covet. Martinez highlights that a sustained break above the $100,000 mark is critical to invalidating Bitcoin’s current bearish outlook and setting the stage for new all-time highs.
However, if Bitcoin fails to reclaim this psychological level and falls below $92,000, it risks further downside, potentially correcting toward new range lows between $78,000 and $74,000. As of writing, the Bitcoin price is trading at $94,154, meaning a drop in these range lows would mark a massive 17.16% to 21.41% decline.
Source: NewsBTC