Bitcoin BTC/USD Could Plummet to the Low $80,000 Range If It Fails to Hold $90,000 as Support, Analyst Warns

A prominent cryptocurrency analyst has raised concerns about Bitcoin's (CRYPTO: BTC) potential downfall if it fails to maintain a significant support level.

Altcoin Sherpa, a well-known crypto trader, alerted on Friday that Bitcoin's value could plummet to the low $80,000 range if it fails to hold $90,000 as support.

The crypto trader also speculated that Bitcoin might continue its bearish trend until the US government finalizes its plans for the Bitcoin seized from the Silk Road darknet marketplace. This speculation comes in the wake of reports that the government has received legal approval to sell over 69,000 BTC.

“Maybe we're going to just see an endless twap sell for now and no bidders until this stupid government selloff is over. If ppl get overlevered then it could get ugly if we lose 90k or so. Hoping we can absorb it but not feeling super confident. wouldn't be super surprised If we wick down to mid low 80ks in some scenarios,” the analyst said in the post.

At the time of writing, Bitcoin was trading at $94,356, up just 1% in the last 24 hours.

The analyst also shared his thoughts on the Solana (CRYPTO: SOL)-based memecoin Fartcoin (Fartcoin), predicting a potential drop of more than 28% from its current value based on Fibonacci retracement levels.

Fartcoin was trading at $0.84, down 2.4% in the last 24 hours.

The potential loss of a key support level for Bitcoin could have significant implications for the cryptocurrency market. The uncertainty surrounding the US government's plans for the seized Bitcoin adds to the volatile nature of the market.

Moreover, the predicted decline of Fartcoin, a Solana-based memecoin, underscores the risks associated with investing in such digital assets. As the market continues to evolve, investors must remain vigilant and informed about these developments.