Bitcoin at a Crossroads: Analysts Warn of Potential Drop to $94,000 Amid Bearish Signals
After a fleeting recovery, Bitcoin (BTC) finds itself at a critical juncture, struggling to maintain its position above key support levels. While bulls strive to reclaim the $110,000 mark, a growing chorus of analysts warns of a potential price drop to $94,000, and possibly even $90,000, if the cryptocurrency fails to hold its current technical floor.
Mounting Bearish Signals in BTC's Short-Term Outlook
Bitcoin recently slipped to an eight-week low of $107,900, breaking below its established local range of $108,700-$119,500 for the first time in nearly two months. This downturn has raised significant concerns among investors. Crypto analyst Ali Martinez points to signs of "fatigue" in the market, noting "cracks" in Bitcoin Dominance that previously propelled the bull market momentum. Martinez highlights a troubling parallel to Bitcoin’s 2021 price action, where a bearish divergence with the Relative Strength Index (RSI)—price making higher highs while RSI makes lower lows—preceded a major bear market. Further reinforcing the bearish sentiment, the MACD indicator has turned negative, and a "death cross" has appeared on the Bitcoin MVRV Momentum indicator, historically a reliable signal of cyclical market tops. This confluence of technical indicators suggests a macro trend shift from positive to negative momentum.
The Battle for Key Support and Long-Term Projections
The $108,700 support level is paramount for Bitcoin's immediate performance. A weekly close below this crucial point could confirm a deeper trend reversal, echoing the pattern observed in 2021 when the loss of a similar support led to a substantial decline. Should this technical support fail, Bitcoin could retest subsequent levels at $104,500 and $97,000, ultimately risking a drop to the mid-zone of its macro range, specifically around $94,000. Conversely, analyst Ted Pillows offers a contrasting long-term outlook. He suggests that historical patterns indicate Bitcoin bottoms often occur after a retest of the weekly 60 Exponential Moving Average (EMA), currently positioned near the $92,000 support zone, which also contains a CME gap. In this scenario, Pillows predicts a reversal for Bitcoin within 3-4 weeks, potentially leading to a new all-time high by November or December. As of this report, Bitcoin is trading at approximately $107,947, reflecting a 7.5% decline over the past week.
