Bitcoin (BTC) has been experiencing significant volatility in recent weeks, initially sparked by Donald Trump’s proposed trade tariffs and further exacerbated by the latest Consumer Price Index (CPI) data. The inflation report caused BTC to drop to as low as $94,000 before making a partial recovery. However, crypto analyst Ali Martinez believes that Bitcoin must defend a crucial price level to avoid a substantial correction.
Analyst Identifies Critical Bitcoin Price Level
Martinez highlighted the Pi Cycle Top Indicator in a recent post on X. This indicator is a tool used in the Bitcoin market to identify market cycle peaks. It tracks the 111-day moving average (MA) and a multiple, typically 2x, of the 350-day moving average. When the 111-day MA crosses above the 2x 350-day MA, it historically signifies a market top.
According to Martinez, Bitcoin tends to see sharp price corrections when it falls below the 111-day MA, which currently sits at around $93,400. If BTC drops below this level, it could trigger a significant downward move.
Crypto analyst Merlijn The Trader also shared insights on BTC’s price action, comparing the current trends to those of 2021 and 2025. The analyst pointed out a bullish diamond pattern forming and suggested that a successful breakout could push BTC to new all-time highs above $120,000.
Where Is BTC Headed Next?
Daan Crypto Trades analyzed Bitcoin’s recent price movements in response to the CPI data, noting that inflation remains high in the US, reducing the likelihood of further interest rate cuts by the Federal Reserve (Fed). Daan highlighted the importance of BTC staying above $90,000 to avoid entering a “danger zone” and potential larger sell-off.
Despite recent bearish developments, Bitcoin has been holding steady in the mid-$90,000 range. However, there is caution in the market about a possible drop to $80,000 if selling pressure increases. At the time of writing, BTC is trading at $95,324, down 1% in the last 24 hours.
In conclusion, Bitcoin’s price movements remain uncertain, with analysts closely monitoring key levels to determine the next direction. Traders and investors are advised to exercise caution and stay informed about market developments to make well-informed decisions.