Analyst Warns: 'Bitcoin Price Could Drop Below $100.000'

Bitcoin recently touched the $107.000 mark, marking a new all-time high. Meanwhile, the course however, has fallen by several thousand dollars again. This raises the question of whether the gains for Bitcoin are now over.

Signs of weakness point to price declines

There are notable signs of weakness as Bitcoin moves through the markets. When the price is moving higher but momentum is decreasing, it can be an indication of a potential trend reversal. This is exactly what I am seeing in the daily charts, where a bearish divergence is starting to develop. The last time momentum showed such a divergence, it resulted in a rapid drop of 4,5%. This reminded me that caution is advised when entering long positions.

Even after six consecutive green weeks, I shared the concerns about where Bitcoin is headed next. The price has flirted with $107.000, but it has failed to hold on to that price. Support seems to be working for now, but the pressure to defend it is mounting.

The road to $91.000?

On the 50-day chart, Bitcoin appears to be forming the right shoulder of a potential inverse head-and-shoulders pattern. While this pattern is usually positive, in this short-term it leads to a potential retest of the 91.000-period exponential moving average around $XNUMX.

The chances of this drop are increasing, especially as Bitcoin fails to break the crucial neckline at $107.000. This same level has previously triggered a bearish trend reversal in the markets. A possible rebound from $91.000 to the neckline could ease the chances for Bitcoin to reach $150.000 in the future.

Frequently Asked Questions

Why is the $100.000 mark so important for Bitcoin?
The $100.000 mark not only acts as a psychological barrier, but also as a technical level that influences market dynamics. A fall below this level can damage investor confidence.

What are the signs that could indicate a decline?
A bearish divergence in momentum indicators and a failure to break through crucial resistance levels are some of the main signals. This could indicate a turn in the market.

Is there still hope for a recovery towards previous highs?
Yes, if Bitcoin manages to maintain strong support around $91.000, it could eventually lead to another attack on $107.000 and perhaps even a surge towards $150.000.