$92,000 Is Bitcoin's Key Support — Here's What Top Analyst Says Will Happen If It Fails

Pseudonymous cryptocurrency analyst Ali Martinez has cautioned that Bitcoin BTC/USD is vulnerable to a steep decline, citing a lack of substantial support below the $92,000 mark.

What Happened: Ali’s analysis, shared in a series of tweets on Wednesday, indicates that a failure to hold this level could lead to a rapid price correction down to the $74,000−$78,000.

Bitcoin is trading at $93,950, down 3.5% over the last 24 hours.

Other major altcoins like Solana SOL/USD, Dogecoin DOGE/USD and Cardano ADA/USD are trading down 7.5% 8.5% and 11%, respectively.

This warning comes after Bitcoin broke below a key demand zone between $95,400 and $98,400, an area where 1.77 million addresses acquired more than 1.53 million BTC.

Ali pointed out that Bitcoin breached a head-and-shoulders pattern yesterday and invalidated the bearish setup.

A head-and-shoulders pattern is a bearish chart formation signaling a potential trend reversal, often predicting a decline in price.

However, he noted, that today’s price action has reversed these gains, pulling BTC back below the right shoulder and "reigniting bearish concerns".

Also Read: XRP ETF ‘Very Soon,’ Likely Next After Bitcoin And Ethereum, Ripple President Says

Ali highlighted that the break below this key demand zone is concerning because, "These holders could now be forced to sell some BTC to cut potential losses."

He also previously warned that a dip below $92,730 would lead to "free fall territory" for Bitcoin.

According to Ali, if Bitcoin falls below $92,000 "a steep drop, with little support until $74,000" could be on the cards.

While technical indicators such as TD Sequential suggest a potential rebound in the short-term, and the trader also mentions that, "traders on Binance are leaning bullish on Bitcoin", Ali also indicated that the wider market conditions suggest a need for caution.

The TD Sequential is a technical analysis indicator that identifies potential trend exhaustion and reversal points in price charts.

What’s Next: Ali suggested that a short-term move to $98,600 is possible.

However he also noted there is a $35 million liquidation zone around $98,600 and that "market makers may try to grab!"

Despite this, and for the bearish outlook to be invalidated, Ali stressed that Bitcoin "must reclaim $100,000 to invalidate the bearish outlook and set its sights on new all-time highs".

Read Next:

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