While Bitcoin enthusiasts celebrated new all-time highs above $108,000 in December 2024, the party might be coming to an abrupt end. The leading cryptocurrency has already shed 16% from its peak, and technical indicators suggest more pain could be ahead. Much more pain.
The writing’s on the wall: weakening demand, sluggish blockchain activity, and dwindling capital inflows paint a grim picture. Add to that a bearish divergence in the RSI and a completed five-wave Elliott Wave structure, and you’ve got yourself a recipe for disaster. Or at least a serious correction. Recent analysis shows massive liquidity blocks sitting between $86,000 and $104,000, suggesting intense trading activity within this range.
Bitcoin’s currently hovering around $95,000, but that level looks shakier than a house of cards. Recent liquidations totaling $340 million in just 24 hours tell the story of overleveraged traders getting caught with their pants down. The next stop? Technical analysis points to $86,000 as a vital support level where things could get really interesting – and not in a good way. The extended bull market euphoria typically signals the final phase before a significant correction.
Institutional investors, sitting pretty with their average entry at $89,000, might start sweating if prices approach that level. Meanwhile, retail traders on Binance who got in at $59,000 are still laughing all the way to the bank. For now, at least. Former President Trump’s victory has triggered a buying frenzy among cryptocurrency investors.
A rising wedge pattern and that pesky ABC corrective pattern in Wave 4 suggest the market’s running out of steam. Sure, there’s talk of MicroStrategy planning to raise $2 billion for more Bitcoin purchases, but even that might not be enough to stop the bleeding.
The good news? Long-term projections still point to potential highs of $120,000 to $200,000, with some analysts eyeing October 6, 2025, as a significant date based on the Mars-Vesta cycle.
But before that happens, hodlers might need to buckle up for a wild ride down to $86,000 – or worse, the dreaded $70,000 to $75,000 range. Welcome to crypto, where yesterday’s gains are tomorrow’s pain.
