Bitcoin News Today: Bitcoin faces key test as analysts warn of potential sharp drop to $95,000

Cryptocurrency markets are closely monitoring potential signs of a sharp Bitcoin price correction as analysts highlight historical precedents that could influence near-term price action. Prominent trader Tom Lee has warned that if past patterns repeat, Bitcoin may experience a significant drop from its current level of around $113,000 to as low as $95,000 [1]. This forecast is rooted in recurring technical and behavioral trends observed in earlier market cycles, particularly those from 2017 and 2020, where similar price movements occurred before eventual rebounds [2].

The warning comes amid ongoing volatility, with Bitcoin already experiencing a six-day losing streak. Analysts have pointed to the Relative Strength Index (RSI) as a potential signal of an imminent correction. The metric currently indicates that the asset is in overbought territory, suggesting the likelihood of a pullback in the coming weeks [3]. Additionally, two major liquidity clusters at $116,800 and $119,000 are being closely observed, as a breakdown below these levels could trigger further downward pressure [2].

Bitcoin is also approaching a critical resistance zone between $114,000 and $116,000. This area has repeatedly capped upward momentum in recent months, and a failure to break above it could confirm a bearish trend [4]. The situation is further complicated by a surge in leveraged positions, which increases the risk of mass liquidations should the market move sharply in one direction [5].

While some analysts, including Ali Martinez, are preparing for a potential sharp drop, others like Michael Saylor, Executive Chairman of MicroStrategy, advocate for a long-term approach. Saylor has reiterated his belief that Bitcoin should not be sold, emphasizing its role as a store of value and hedge against inflation. His firm has accumulated a large BTC position and continues to promote a strategy of holding rather than trading, despite current market turbulence [6].

These contrasting views highlight the uncertainty that persists among investors and analysts. The next few weeks will be crucial in determining whether Bitcoin follows a bearish correction or stabilizes and continues its upward trajectory. Investors are advised to remain cautious and monitor key technical levels as the market navigates this critical juncture.

Sources:

[1] https://dailyhodl.com/2025/08/07/trader-issues-bitcoin-alert-says-btc-could-drop-sharply-if-history-repeats-itself-here-are-his-targets/

[2] https://www.binance.com/en/square/post/27964202844842

[3] https://coinpedia.org/price-analysis/bitcoin-price-crashes-for-6-days-straight-is-95k-next/

[4] https://cryptodnes.bg/en/analizi/bitcoin-faces-key-test-at-115000-as-holders-hold-strong-and-analysts-eye-ath/

[5] https://cryptoquant.com/insights/quicktake

[6] https://www.ainvest.com/news/bitcoin-news-today-michael-saylor-urges-bitcoin-holders-avoid-selling-long-term-bullish-outlook-2508/