The Bitcoin price could crash if it fails to hold key resistance levels. A crypto analyst has revealed that a decline to $89,000 was well within possibility, as sell-offs below the $100,000 mark have continued to hinder Bitcoin’s price upward momentum.
Bitcoin Price Correction To $89,000 Possible
On November 26, TradingView crypto analyst Pejman Zwin shared a detailed chart representing a technical analysis of Bitcoin‘s price movements in a 1-hour time frame. The Bitcoin price chart highlighted vital resistance lines, support zones, and technical indicators suggesting an impending crash.
At the top of the price chart is a yellow zone identified as the Potential Reversal Zone (PRZ), where Bitcoin is expected to face significant resistance as it aims for the $100,000 milestone. The chart also highlights a horizontal resistance line of around $95,904, which Bitcoin previously struggled to break.
At current resistance levels between $97,000 and $98,000, Zwin has indicated that if Bitcoin can successfully push above these thresholds, its price could rise significantly towards $100,000.
On the other hand, Bitcoin could experience a massive price decline if it fails to reach the resistance levels mentioned above. The analyst’s price chart showcases green zones representing critical support cones where Bitcoin could bounce back if its price corrects.
If Bitcoin drops below support levels between $95,600 and $92,000 and breaks the lower line of the ascending channel on its chart, Zwin has forecasted that its price could crash as low as $89,000 this bull cycle. The analyst describes this crash point as the “cumulative long liquidation leverage, where Bitcoin could see its price correcting between $91,000 and $89,000, representing an 8% to 10% crash for the pioneer cryptocurrency.
Key Factors Pushing The BTC Price Upwards
On the flip side, Zwin disclosed in his Bitcoin analysis report that the cryptocurrency is pumping again, driven by a wave of positive market sentiment sparked by recent developments in the crypto space that have been headlines. The analyst revealed that the news of the Chinese Court affirming the legality of Bitcoin and crypto ownership has been a key catalyst behind the sharp rise in the price of BTC.
Additionally, Donald Trump‘s plans to appoint a White House crypto advisor have provided a significant boost to the BTC price, propelling it to current levels and enabling it to break through important resistance lines.
Based on the above chart, Zwin reveals that Bitcoin has entered five new impulsive waves from the Elliott wave theory. This bullish development occurred after the cryptocurrency broke past key resistance lines.
Moreover, Zwin’s Bitcoin price chart showcases a “Bump and Run Top Pattern,” with the cryptocurrency already completing the “Bump phase” and entering a “Run phase.” Taking this into consideration, the analyst has predicted that if Bitcoin can surge above $98,700, investors and market watchers should expect it to skyrocket to $100,000.
Featured image created with Dall.E, chart from Tradingview.com
