Bitcoin Faces Potential Drop to $90,000 Despite Bullish Trend

Crypto analyst X Force has drawn attention to a key fractal from 2023, suggesting a bullish outlook for Bitcoin's price. However, the analyst also indicated that a drop to $90,000 could still occur, though this would not invalidate the overall bullish trend.

X Force highlighted a fractal from the early phase of the 2023 bull market, noting that the price structure observed then could provide relevant insights for the current analysis. The analyst pointed out that in 2023, a larger degree wave 1 terminated, followed by a shallow wave 2 that retraced only to the 23.6% to 38.2% Fibonacci levels. This interpretation, according to X Force, was valid even in real-time and not just hindsight. The analyst also raised the possibility of Bitcoin creating another low.

X Force explained that the context of micro timeframes is losing weight as every bounce and dump is extremely sensitive to the overall creation of the wave structure. The analyst indicated that Bitcoin could still drop to as low as $90,000 but emphasized the importance of BTC remaining above this critical support level. X Force stated that as long as the Bitcoin price stays above the $90,000 level, the implications of the shorter-term price action have zero impact on the overall macro trend. The analyst added that pullbacks and choppiness are not only healthy but vital to any bull market.

Veteran trader Peter Brandt has raised the possibility of a Bitcoin price crash happening soon. In a post, he questioned if November 2021 was happening all over again for the flagship crypto. His accompanying chart showed how that period formed the cycle peak for BTC, following a double top formation. The Bitcoin price then crashed from its all-time high (ATH) of around $69,000 and consolidated for over two years before witnessing another breakout in 2024. The chart indicated that BTC may have formed a double top again following the recent rally to a new all-time high of $111,900. If so, this could mark the end of the cycle’s bull run, with a crash set to follow. However, the chart suggested that BTC could sustain this bull run if it holds above $104,612.

At the time of writing, the Bitcoin price is trading at around $106,700, up in the last 24 hours.