Bitcoin Price Alert: $60K Crash or $168K Rally on the Horizon?

Bitcoin faces potential retracement levels at $70,000 and $60,000. Profit-taking and increased exchange inflows signal bearish sentiment. A sustained daily close above $100,000 is crucial for bullish continuation.

Bitcoin's recent price movements have sparked heated discussions among market watchers. With BTC currently trading below the $95,000 mark, concerns about a deeper correction are mounting.

Notably, a prominent trader, Tone Vays, said that a trade below this level could increase the chances of it falling to $73,000. Also, veteran trader Peter Brandt pointed to a possible breakdown from a 'broadening triangle' pattern to drop to the $70,000 area.

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On-chain data support the notion of bearish projections in adding weight; it looks like more than 33,000 BTC changed hands through exchanges in a week to the tune of about $3.23 billion, increasing selling pressure in the immediate term.

Profit realization also increased sharply, with December 23 having over $7.17 billion in realized gains alone. The percentage of longs on Binance plummeted from 66.73% to 53.60%, indicating growing caution within the market.

Diverging Views on Bitcoin's Future Price Action

While short-term outlooks cut a bearish tone, the long-term projections remain bullish. Fundstrat seems to continue its bullish optimism, projecting targets as high as $250,000 until 2025. For Mark Newton, however, it's quite the contrary. In his opinion, an impending pullback right to $60,000 will arrive before any more serious upwards momentum resumes for the cryptocurrency giant.

Analysts at IntoTheCryptoverse suggested the price action resembled the flash crash of Bitcoin and Nasdaq's QQQ index around the time of significant macroeconomic events, among them the inauguration of Donald Trump.

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In the near term, Bitcoin has to reclaim critical support at $97,300 to invalidate the bearish outlook. This would require the bulls to establish an uptrend by consolidating above $100,000 on a daily close for their sights on a probable surge up to $168,500.

Critical Price Levels to Watch

The structure in the market, at this point, is the most important one for Bitcoin. The path below $93,806 seems relatively clear to $70,085. Both these levels are closely being watched by investors when BTC is failing to hold above key support. Failure to reclaim $97,300 may open the door to further downside.

On the other hand, if Bitcoin could recover smartly and close a day above the psychological $100,000 level, then the tide could change in bulls' favor and take prices anew to a new all-time high close to $168,500. Till such time, the mood is not very bold among the participants.

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