Bitcoin’s (BTC) performance in the cryptocurrency market in the last month has, in many ways, been reminiscent of the previous bull cycles. Specifically, the cryptocurrency has been moving at a neck-breaking pace, generating or erasing tens and hundreds of billions of dollars of value within ours.
One on-chain expert and cryptocurrency analyst, Ali Martinez, has found a constant amidst the volatility: BTC’s most important support level.
Indeed, according to the expert, Bitcoin must remain above $96,000 with at least relative consistency, lest it face a collapse to $85,000. Interestingly, despite the cryptocurrency market’s dynamism and BTC making the round trip toward $104,000 and back last week, the crash zones have remained fairly consistent.
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Why Bitcoin could crash to $85,000
On November 26, as Bitcoin was facing a correction from almost $99,000 toward $91,000, Martinez explained in an X post that if the coin failed to stabilize above $91,583, it would decline all the way to $85,610.
Furthermore, the expert grounded a part of their prediction in BTC’s historical performance.
As 2023 was rolling into 2024, the world’s premier cryptocurrency entered a rally that took it toward $50,000, but, having failed to sustain the momentum, the flagship digital asset corrected below $40,000 by mid-January.
Still, such a historical comparison also indicates that, even if Bitcoin drops to $85,000, it is unlikely to stay depressed. In fact, after collapsing below $40,000 in mid-January, BTC took no more than two weeks to reenter the rally that eventually took it to its first decisive all-time high (ATH) of the year, near $73,000 in March 2024.
If the entire round trip were repeated, it would indicate that the world’s premier cryptocurrency could climb to $160,000 in late January or mid-February.
Finally, Ali Martinez is far from the only prominent voice in the community who is fearful of a short-term crash but mostly confident in an even greater long-term rally.
For example, the prominent investor and author of the best-selling personal finance book ‘Rich Dad Poor Dad’ Robert Kiyosaki warned on December 1 that Bitcoin would soon crash to $60,000. However, he simultaneously explained that such a movement would create a ‘buy the dip’ opportunity and that the coin would eventually settle closer to $250,000 in 2025.
Bitcoin price chart analysis
Whatever the future might bring, it is worth pointing out that Bitcoin does not, at press time, appear in danger of a crash to $85,000 or a collapse to $60,000. Indeed, despite the major sell-off late on December 9, BTC remains 22.67% in the green in the last 30 days and appears to have some stability at its press time price of about $97,750.
Additionally, technical analysis (TA) hints that the cryptocurrency’s next move will be upward as its 1.51% 24-hour drop led to a relative strength index (RSI) of 60.05 – well below ‘overbought’ territory.
Featured image via Shutterstock
