As Bitcoin (BTC) struggles to reclaim the $100,000 resistance, a market expert is warning that the asset’s momentum above this level might have ended for now, and investors should anticipate a massive crash.
Notably, after hitting a record high of over $108,000, Bitcoin has faced sustained sell-offs, leaving the leading digital asset at risk of dropping below $90,000.
In this case, BTC has been ‘smacked down’ by psychological resistance at the six-figure spot, triggering what could be the start of a significant correction, according to cryptocurrency analyst MFHoz in an X post on December 28.
The expert acknowledged that Bitcoin briefly surpassed its ascending triangle formation—typically a bullish pattern— that led to an all-time high before sharply reversing. This rejection signals a possible breakdown toward lower price zones, with a projected freefall to the $18,000 to $20,000 region.
“Bitcoin got smacked down hard at $100,000—psychological resistance held strong. The party’s over, and the crash is coming. It’s heading straight down to $18,000–$20,000,” the expert said.
Key support levels to watch lie around the $60,000 range, but the overall trajectory indicates a potential descent beyond that, possibly mirroring Bitcoin’s steep corrections in past cycles.
It’s worth noting that Bitcoin’s inability to reclaim the $100,000 spot has resulted in a series of projections cautioning about a possible sustained price downturn.
One of the warnings emanated from legendary trading expert Peter Brandt, who shared a similar bearish outlook in an X post on December 29.
According to Brandt, Bitcoin appears to be following the ‘Hump Slump Bump Dump Pump’ pattern. This formation mirrors Bitcoin’s cyclical boom-and-bust tendencies, and the latest price action seems to fit the mold.
His analysis shows Bitcoin climbing steadily (the Hump), followed by a correction (the Slump), only to rally into a sharp peak (the Bump).
Now, Bitcoin appears to be teetering at the ‘Dump’ phase, with price levels hovering around the $95,000 spot. If this pattern plays out entirely, a key support of around $88,605 is critical to watch.
What next for Bitcoin’s price?
Despite the current bearish technical sentiment, the long-term outlook suggests Bitcoin is likely destined for more gains, backed by several fundamentals.
With Donald Trump’s second presidency upcoming, analysts project Bitcoin could soar higher amid the potential rollout of friendly cryptocurrency regulations.
To this end, pseudonymous crypto analyst Thescalpingpro predicts Bitcoin could replicate its early 2024 rally in the first quarter of 2025. In Q1 2024, Bitcoin surged past $60,000 after a strong uptrend from late 2023.
With Q1 2025 approaching, the analyst highlighted similar patterns, suggesting that Bitcoin’s current consolidation could lead to a breakout between $135,000 and $150,000.
After initially rallying on Trump’s election, Bitcoin seems poised to end the year on a bearish note as the asset has been battered across the holiday season, witnessing notable capital outflows that also impacted related products such as the spot exchange-traded funds (ETF).
The outflow’s severity was highlighted by the fact that BlackRock’s iShares Bitcoin Trust ETF saw its largest single-day outflow on December 24, with $188.7 million withdrawn.
This negative sentiment has persisted despite what can be considered bullish news dominating the sector. For instance, Bitcoin has failed to react to the news that Russia is leveraging the asset to conduct trade amid economic sanctions. However, some analysts believe the current correction is healthy for the markets.
Bitcoin price analysis
Bitcoin was trading at $94,920 by press time, making modest gains of about 0.33% in the last 24 hours. BTC is down over 2% in the red on the weekly timeframe.
As things stand, Bitcoin’s chances of pushing further toward the $100,000 level hinge on reclaiming near-term resistance zones such as $95,000 and $97,000.
On the other hand, breaching the $92,000 support could spell more trouble for the digital asset, with analysts projecting that falling below this mark could lead to a crash to $60,000.
Featured image via Shutterstock
