Crypto Strategist Warns Bitcoin Could Plunge 10% If It Drops Below $100,000

A widely followed crypto strategist has outlined a potential worst-case scenario for Bitcoin, emphasizing the risks if the cryptocurrency fails to surpass the $110,000 mark. The analyst, known by the pseudonym Pentoshi, shared his insights with his 864,500 followers on the social media platform X. According to Pentoshi, Bitcoin's current bullish momentum is driven by sustained demand from corporations and exchange-traded fund (ETF) investors. However, he warns that a drop below $100,000 could signal a significant downturn for BTC.

Pentoshi's analysis suggests that if Bitcoin loses the $104,000 support level and begins to close below previous all-time highs and range highs, the worst-case scenario could see the cryptocurrency plummet to the mid-$90,000s. Despite this bleak outlook, the analyst remains optimistic about Bitcoin's long-term prospects. He believes that the steady inflows from ETFs and corporate investments will prevent prolonged declines, as the supply of Bitcoin is being rapidly absorbed.

At the time of writing, Bitcoin is trading at $108,959, just shy of the $110,000 milestone. Pentoshi predicts that Bitcoin will eventually surpass gold, leaving the precious metal behind in terms of value. He attributes this potential shift to the rapid growth of Bitcoin ETFs and the increasing number of companies gaining exposure to the cryptocurrency.

In addition to his analysis of Bitcoin, Pentoshi also shared his thoughts on the layer-1 protocol Solana. He believes that if Solana can convert the $180 resistance level into support, the cryptocurrency could surge to $220. At the time of writing, Solana is valued at $176, indicating that it is close to reaching the resistance level identified by Pentoshi.

Pentoshi's insights provide a nuanced view of the current state of the cryptocurrency market, highlighting both the potential risks and opportunities for investors. His analysis underscores the importance of monitoring key support and resistance levels, as well as the impact of institutional investment on the market. As the cryptocurrency landscape continues to evolve, investors will need to stay informed and adapt their strategies to navigate the volatile market conditions.