As Bitcoin (BTC) continues to trade in the mid-$90,000 range, noted crypto analyst Ali Martinez has cautioned that losing a critical support level could send the top cryptocurrency plunging to as low as $83,444.
Bitcoin Must Hold This Support Level For Further Upside
In an X post published today, Martinez highlighted that BTC must hold the ‘most critical’ support level at $93,198. Failure to defend this price level may lead to a sharp decline in the digital asset’s price, potentially sending it down to $83,444.
Martinez also highlighted a concerning drop in the number of wallets holding one or more BTC, which has fallen by 3,400 over the last two months. This trend suggests that many investors may be taking profits at current price levels, rather than accumulating further.
Adding to the bearish outlook, Martinez shared another chart showing that Bitcoin whales – wallets with large holdings – have offloaded nearly 50,000 BTC in the past ten days. Such behavior often precedes short-term price corrections or a period of sideways consolidation.
Meanwhile, Bitcoin’s recent price action remains indecisive. According to a separate analysis by crypto trader Ash Crypto, BTC currently has two unfilled Chicago Mercantile Exchange (CME) futures gaps – one between $96,440 and $97,680 on the upside, and another between $91,360 and $92,520 on the downside.
Ash suggested it is “highly likely” that BTC will move lower to fill the downside gap first. Once that happens, the analyst believes Bitcoin could rebound strongly, potentially pushing past the $100,000 mark later this month.
Offering a more optimistic perspective, analyst Ted noted that BTC is currently in the Wyckoff accumulation phase. The seasoned crypto analyst stated:
Currently, BTC is at a very crucial resistance level which means it could see some consolidation. I think it’s highly likely that BTC retests the $92K-$92K level before the next leg up.
All Eyes On Tomorrow’s FOMC Meeting
Traders and investors will be closely watching the upcoming Federal Open Market Committee (FOMC) meeting. While the US Federal Reserve (Fed) is widely expected to hold interest rates steady, Fed Chair Jerome Powell’s comments could significantly impact risk assets like Bitcoin.
Despite technical indicators suggesting some underlying weakness in the crypto market, on-chain metrics show signs of a looming supply squeeze, as exchange reserves continue to decline. At press time, Bitcoin is trading at $94,706, up 0.8% over the past 24 hours.
Featured Image from Unsplash.com, charts from X and TradingView.com
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