Bitcoin Price Teases Breakdown Below All-Time Highs: Predictions and Market Analysis

The cryptocurrency market is currently experiencing significant volatility, with Bitcoin (BTC), the leading digital asset, demonstrating a possible downturn below its former record-breaking highs set at $109,300. The tendency of Bitcoin price movements has crypto traders on edge, as they await the outcomes of a 13% correction from Bitcoin’s all-time high.

The Impact of Bitcoin’s Decline

Reports from the outset of 2025 indicate that Bitcoin struggled under its former height, initially witnessed in January the same year. This psychological barrier now hangs precariously, yet it isn’t the only level gaining attention from market observers. A selection of simple (SMA) and exponential (EMA) moving averages hang on the brink of transitioning from support to resistance as the Bitcoin value grapples with a downward price movement. For instance, Bitcoin has dipped below the 100 EMA on the daily chart. This indication is less than optimal, prompting concerns of an extended correction towards the $103,000 mark.

Market Analytics

Using data from Cointelegraph Markets Pro and TradingView, the 100-day EMA resides at $110,820. Elsewhere, the 200-day SMA, a well-known bull market support line, hovers just under $101,000. The most recent price tag for BTC/USD beneath this trend line was observed around mid-April of 2025. Nevertheless, other stakeholders in the market have lower Bitcoin price targets. These include revisiting the $100,000 milestone or even retracting into five-figure territory.

On Bitcoin’s Future

Market factors such as reduced trade volume and relative strength index (RSI) divergences endorse these lower predictions. Axel Adler Jr., a contributor to the onchain analytics provider CryptoQuant, proposes that Bitcoin’s speculative investor base could salvage the market situation. In his opinion, the closest reliable support zone is set between the $100,000 and $107,000 range. This range captures the intersection of the STH Realized Price and SMA 200D. Adler refers to short-term holders, namely entities retaining Bitcoin for six months or less, as a possible lifeline during market pullbacks.

Bitcoin Market Predictions

A secondary support level reflecting the cost basis of short-term holders possessing coins ranging from 3 to 6 months is predicted around the $93,000 mark. This level could serve as a vital line of defense should the market forsake the $100,000-$107,000 level. In recent days, Bitcoin has triggered numerous major liquidation cascades as long positions face penalties. Moreover, data sourced from CoinGlass illustrated that almost $500 million worth of Bitcoin long liquidations occurred since Sunday.

A Possible Market Rebound?

At present, merchandise in exchange order books suggests that the lion’s share of downside liquidity has been claimed, hence sparking faint hopes of a market rebound. If Bitcoin’s price returns to the $114,000 level, this could result in a barrage of short liquidations, thereby adding fuel to the market’s potential recovery. Such changes occasionally attract the price, providing smart money with fuel as the liquidity squeeze could occur within days. However, the speculative nature of digital assets prompts investors not to rely on conjecture for trading decisions and manage their investments cautiously.

Conclusion

While this article does not provide investment advice or recommendations, it is crucial to note that every investment and trading step carries inherent risk. Hence, individual research is highly recommended before making any investment decisions. In summary, Bitcoin is currently testing its resilience in the face of market volatility. Its potential trajectory towards old highs or further lows will be shaped by multiple factors. Moving forward, traders and investors will monitor these developments in expectancy of the next shift in the world of cryptocurrencies.