Bitcoin’s price has been on a rollercoaster ride lately, with analysts warning of a potential massive crash that could see the flagship asset drop to $60,000. After trading close to $95,000 for two weeks, Bitcoin recently experienced a 2.5% drop, reaching an intraday low of $95,134. This decline extended its losses to 3.7% over the past fortnight, with the asset’s market cap falling to $1.9 billion.
Market analysts and on-chain data suggest a higher probability of Bitcoin’s price plummeting to $60,000 by Donald Trump’s inauguration on Jan. 19. Crypto analyst Ali Martinez highlighted that savvy investors have been transferring over 33,000 BTC, valued at more than $3.23 billion, from their wallets to exchanges, indicating a bearish sentiment in the market. Additionally, on Dec. 23, Bitcoin holders realized over $7.17 billion in profits, indicating increased profit-taking activities.
Derivative traders also appear less bullish on Bitcoin’s near-term price outlook, with the percentage of long positions dropping from 66.73% to 53.6%. Martinez emphasized the key support level for Bitcoin between $93,806 and $97,041, noting that a failure to hold this zone could result in a correction to $70,085.
Some industry experts, including Tone Vays and Peter Brandt, have warned that a further decline below the critical $95,000 support level could trigger a significant drop, potentially pushing Bitcoin to around $60,000. However, not all analysts share this bearish outlook. Georgii Verbitskii of TYMIO remains optimistic, citing increased institutional activity in the market as a backing for Bitcoin. He anticipates a limited drop to $89,000 at most in the short term.
In a contrasting view, pseudonymous trader Titan of Crypto expects a correction phase with Bitcoin dropping to $87,000 before moving towards $110,000. Another analyst pointed out that Bitcoin is completing the third Elliott Wave count, setting a target of $127,000 for the asset. Research firm Santiment also shared a bullish trend, noting that crypto whales are actively moving stablecoins to exchanges post-Christmas dip, indicating positive market sentiment.
Despite the mixed opinions, Bitcoin’s price at press time was trading at $96,464 per coin, down 2.1%. Whether the asset will experience a significant drop to $60,000 or continue its upward trajectory remains to be seen as the market navigates through the uncertainties.