Bitcoin Drops 5% From Peak, Analysts See 30% Upside

Bitcoin’s price action has recently drawn a clear line between long-term bullish expectations and short-term market realities. After reaching a peak above $111,000 in May, the Bitcoin price has since entered a retracement phase, currently trading below $105,000. While some market participants view this downturn as a sign of a weakening trend, others see it as a typical bullish correction.

Crypto analyst MasterAnanda, for instance, suggests that Bitcoin is structurally robust enough to reach new highs, but he believes the speculated $200,000 price target for this cycle is unlikely. Instead, he identifies $137,000 as a more realistic upside target for when Bitcoin rebounds from its current correction. MasterAnanda’s analysis on TradingView indicates that Bitcoin remains in a bullish structure, but the $200,000 peak is out of reach for this cycle.

According to MasterAnanda, the formation of a higher low on the larger time frame will be crucial in confirming that Bitcoin’s macro uptrend remains intact. He outlines $88,888.88 as an ideal retracement level to achieve this higher low, as it aligns with the 0.618 Fibonacci level and is well above the prior bottom at $74,500 on April 7. Despite the current sell-off, MasterAnanda argues that the broader trend is healthy, stating that Bitcoin will never trade below $80,000 again, ruling out any deep reversal below the prior low.

MasterAnanda also notes that if Bitcoin holds above $100,000 to $102,000, this retracement would be considered minor, with price action still classified as bullish continuation rather than a breakdown. If Bitcoin bulls manage to keep prices trading above that area, it would suggest the current move is nothing more than a short-term dip. When that moment arrives, the bias will shift from short to long, and a rally to $137,000 could follow. However, a clean break below the $100,000 price level would mark a significant shift in how long Bitcoin reaches new highs.

Another trader, RLinda, shares a similar perspective, highlighting the $102,000 and $101,400 zones as vital structural supports. Her analysis suggests that the false breakout at the key $110,000 resistance level marks the end of the recent rally leg, and the current decline could be a liquidity-driven correction rather than a complete reversal of the bullish trend. RLinda’s chart shows that Bitcoin has exited its upward channel, and the outcome will depend heavily on whether support levels at $102,000 and $101,400 can hold. A bounce from these levels could lead to a retest of the $106,000 to $108,000 resistance zone, where market direction may become clearer. If bulls fail to hold $101,000, it could invite a more dramatic sell-off that pushes the Bitcoin price toward a local bottom or even deeper.

Both analysts agree that Bitcoin’s current correction is not yet a full collapse. At the time of writing, Bitcoin is trading at $104,290, up by 0.5% in the past 24 hours. The overall sentiment remains bullish, with analysts predicting a potential rally to $137,000 if key support levels hold. However, the path to new highs may be more gradual than initially anticipated, with the $200,000 target now considered out of reach for this cycle.