Bitcoin (BTC) Must Hold This Critical Support Level To Avoid Plunging To $83,444: Analyst

As Bitcoin (BTC) trades in the mid-$90,000 range, crypto analyst Ali Martinez warns that a critical support level must hold to prevent a steeper decline.

Bitcoin Must Hold This Support Level For Further Upside

In an X post today, Martinez highlighted that BTC must hold the ‘most critical’ support level at $93,198. Failure to defend this price level may yet again lead to a sharp decline in the digital asset’s price, potentially sending it down to $83,444.

The analyst also pointed out 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.

However, crypto trader Ash Crypto suggests that 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.

According to his analysis, 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.

Another analyst, Ted, offers a more optimistic perspective, stating that BTC is currently in the Wyckoff accumulation phase. The seasoned crypto analyst further noted:

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.

Traders and investors will also 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 the time of writing, Bitcoin is trading at $94,706, up 0.8% over the past 24 hours.