If This Key Support Fails, Bitcoin Could Plummet To $90,000, Warns Leading Analyst

[Ben Graham]

The recent downturn in Bitcoin prices has raised eyebrows among market analysts, with one prominent figure warning that the leading cryptocurrency could face a significant decline toward the $90,000 mark in the coming months. 

As Bitcoin opened the month officially dropping below critical support levels, the market’s reaction remains tepid, suggesting that many investors have yet to fully grasp the severity of the situation.

BTC’s Last Line Of Defense

In a recent post on X (formerly Twitter), market analyst Doctor Profit highlighted key price levels associated with various holder groups: $115,600 for 1 million holders, $113,600 for 3 million holders, and approximately $107,000 for 6 million holders. 

As Bitcoin traded below all these thresholds earlier on Monday, Doctor Profit pointed out that every recent buyer is currently facing unrealized losses. However, he cautioned against interpreting this lack of panic as a sign of stability. 

According to him, “these investors haven’t tasted enough fear yet,” suggesting that market makers may continue to drive prices lower until a genuine capitulation occurs.

The analyst emphasized that the $107,000 to $108,900 zone represents the last robust line of defense for Bitcoin. Should this level fail to hold, he predicts a swift movement toward the $90,000 to $95,000 range. 

Currently, the market’s leading cryptocurrency has recovered above $109,000. It is trading above the last line of support, preventing the analyst’s scenario of an additional 17% price drop for Bitcoin toward its Chicago Mercantile Exchange (CME) gap placed just above $90,000.

Tough September Ahead For Bitcoin 

Doctor Profit also argued in his analysis that the current market sentiment is characterized by minimal fear and an unrealized loss of only 0.5%, especially when compared to the more significant corrections of 30% or more seen in historical bear markets. 

He believes that the lack of panic among the cryptocurrency’s holders indicates that many are still too comfortable, which could set the stage for a more severe market correction.

Further complicating matters, Doctor Profit noted the recent behavior of corporate insiders in the stock market, where over 200 alleged insider trades occurred, with not a single buy recorded. 

If insiders are choosing to offload their stocks during a period of apparent strength, the analyst asserts that this activity could foreshadow similar selling pressure in the Bitcoin and broader cryptocurrency market.

As market makers seek to capitalize on this development, Doctor Profit warns that these entities will likely apply pressure until a substantial portion of short-term traders are forced to sell at a loss. 

Doctor Profit concludes by suggesting that the real pain for Bitcoin holders is still to come, predicting that September will be particularly unkind as the market shifts from denial to a more painful reality.

Featured image from DALL-E, chart from TradingView.com