Fear Grips Crypto: How Low Can Bitcoin Price Plunge?

The big question on everyone’s mind: How low can the Bitcoin price actually go? The cryptocurrency market felt a jolt recently when Bitcoin dipped below the significant $100,000 mark for the first time in about six weeks. This sudden move has sparked intense discussion and varied predictions about where BTC might head next, with some analysts eyeing levels as low as $74,000.

Recent Bitcoin Price Action Below $100K

Just recently, Bitcoin price deviated by 12% from its all-time highs, sliding below $100,000 on June 23rd. This marked the first time the price traded below this level since May 8th. The decline wasn’t just a small blip; Bitcoin fell by over 4.6% in just seven days after briefly touching $109,000 earlier in the week. Data confirms a sharp drop of about 5% on June 22nd alone, moving from a high of $103,400 down to $98,240.

This downturn coincided with a broader market pullback. One significant factor cited was rising geopolitical uncertainty following reports of US airstrikes targeting nuclear sites in Iran. This kind of global tension often leads investors to move away from riskier assets, and crypto is no exception.

Liquidations and Short-Term BTC Price Targets

When the BTC price dropped below $100,000, it triggered significant liquidations in the derivatives market. According to CoinGlass data, the total crypto market liquidations in 24 hours reached $672 million. Bitcoin long positions were hit hard, with over $238 million wiped out between June 22nd and June 23rd.

While buyers did step in around the $99,300-$98,500 range to push the price back up initially, looking at liquidation heatmaps provides further clues. These maps show clusters of bid orders appearing between $98,000 and $97,000. This suggests that the BTC price could potentially drop further in the short term to sweep the liquidity resting in that zone.

Technical Bitcoin Analysis Points Lower

From a technical standpoint, a key pattern has emerged on the daily chart: a potential rounded top, also known as an inverted U-shaped pattern. This formation often signals a bearish reversal. Bulls are currently trying to defend the $100,000 level, which acts as a strong psychological support.

However, if $100,000 fails, technical Bitcoin analysis points to the next key area of interest being between $95,000 and the yearly open around $93,400. Interestingly, the 100-day and 200-day simple moving averages appear to converge near $95,000, adding weight to this zone as potential support.

A decisive daily close below the neckline of the rounded top pattern, which is situated around $93,000, would confirm the bearish breakdown. Such a move could usher in a more prolonged downtrend, with the technical target derived from this pattern sitting at approximately $74,730 – a potential drop of about 27% from recent levels. The Relative Strength Index (RSI) has also declined significantly, currently at 41, indicating building downward momentum.

What Market Factors Are Driving the Crypto Market?

Beyond technical patterns, broader market factors play a crucial role in the current volatility impacting the crypto market. As mentioned, geopolitical events like the situation in Iran have undoubtedly contributed to the risk-off sentiment. Uncertainty on the global stage makes investors cautious across all asset classes, including cryptocurrencies.

Popular analyst AlphaBTC highlighted this point, stating on X that this particular week would have a significant influence on markets and risk assets for the rest of the summer. This underscores how external events can quickly shift sentiment within the crypto market, overriding technical signals in the short term.

Potential Bitcoin Price Prediction Levels to Watch

Based on the recent price action, liquidation data, and technical analysis, several potential downside levels are being discussed for a price prediction:

• Short-Term Liquidity Target: Around $97,000, based on liquidation heatmaps.
• Key Technical Support: The zone between $95,000 and $93,400, supported by SMAs and the yearly open.
• Rounded Top Target: A confirmed breakdown could target $74,730.
• Longer-Term Liquidity: Clusters of liquidity are noted just above $80,000, another area of interest depending on market developments.

While a precise price prediction is impossible in volatile markets, these levels provide a roadmap for potential support areas if the downtrend continues.

In conclusion, the recent dip below $100,000 has put the market on edge. Geopolitical factors, technical patterns like the rounded top, and liquidation dynamics all suggest that further downside is possible. Traders and investors are closely watching key levels, particularly the $93,000 neckline, to gauge the potential depth of this correction.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.