An artificial intelligence (AI) tool has offered a possible bearish outlook for Bitcoin (BTC) in a worst-case scenario after the asset hit an all-time high.
At the moment, Bitcoin is in a consolidation phase above $90,000, but given the cryptocurrency market’s inherent volatility, a price drop remains a possibility.
Therefore, Finbold explored insights from OpenAI’s ChatGPT-4o to determine which factors could contribute to Bitcoin’s crash after the recent highs and possible price targets.
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Bitcoin’s potential worst-case scenario
ChatGPT highlighted that factors such as a shift in market sentiment, regulatory crackdowns, and macroeconomic instability could push investors away from riskier assets like Bitcoin, causing a substantial market retreat.
Additionally, the AI tool pointed out that technological failures, such as a security breach, could erode trust in Bitcoin, causing a sharp value drop. A liquidity shortage, with more sellers than buyers, could exacerbate the decline, and if major institutional investors liquidate their positions, it could trigger further sell-offs, deepening the price plunge.
Regarding possible price movements, ChatGPT-4o projected that Bitcoin could experience an 80-90% drop from its all-time high. This would place Bitcoin’s price in the range of $9,000 to $18,000.
Before such a drop is realized, the AI model noted that investors will need to monitor key psychological support zones such as $50,000, $30,000, and $20,000.
Overall, Bitcoin has seen significant momentum following the election of Donald Trump, who is highly expected to push for implementing pro-crypto policies.
Although the AI model noted that a regulatory crackdown could push Bitcoin down, the asset is pricing in the potential of friendly laws under the next administration, despite critics warning that Trump might not implement the promises made.
Overall, some market players foresee Bitcoin culminating in a high of $100,000 amid the ongoing Trump euphoria.
Bitcoin price analysis
At the time of reporting, Bitcoin was valued at $91,220. It showed minor weakness on the daily chart, down 0.45%. However, on the weekly chart, BTC was up over 14%.
The asset’s technical setup for the short term shows mixed signals. While Bitcoin’s simple moving averages for the 50-day and 200-day suggest more upside potential, momentum indicators offer a cautionary outlook.
Specifically, the maiden cryptocurrency’s 14-day relative strength index (RSI) is in the oversold zone, hinting that a potential correction is on the horizon.
If Bitcoin continues to trade above the $90,000 level, the chances of reaching the $100,000 spot remain high. To this end, Kim Young Ju, the founder of the crypto analysis platform CryptoQuant, in a post on X on November 17, suggested that there is more room for Bitcoin to push towards $135,000 while affirming that the bull market is already here.
“Based on the cumulative capital flowing into the Bitcoin market, the current upper limit appears to be $135K,” he said.
According to the analyst, cumulative capital inflows into Bitcoin have steadily risen, indicating increased investor confidence. However, he cautioned that there might be room for a possible short-term correction while warning that a worst-case scenario could see the maiden digital asset plunge to $55,000.
All in all, Bitcoin’s future outlook looks promising based on key fundamentals, such as the potential implementation of favorable policies. However, investors need to monitor the key support levels identified by the AI tool.
Featured image via Shutterstock
