Bitcoin Price Consolidates In Tight Zone: Why A Crash To $84,000 Is Likely

Scott Matherson

3 months ago

3 mins read

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Analysts are currently leaning towards a further breakdown in the Bitcoin price, as market volatility has positioned the pioneer cryptocurrency in a tight consolidation zone. Crypto expert Hamed_AZ on TradingView has shared a bullish and bearish outlook for the Bitcoin price. However, the analyst highlights that a crash of $85,000 is more likely.

According to Hames_AZ, the Bitcoin price is set to decline further, possibly reaching new lows at $85,000. The analyst revealed that the cryptocurrency continues to trade sideways, failing to break out of its present consolidation zone.

Bitcoin Price Set To Crash To $85,000

Earlier this month, the Bitcoin price crashed to new levels below $100,000, failing to break key resistance areas in its attempt to reach new all-time highs. At the time, the sharp decline was likely due to broader market volatility and a shift in sentiment. However, the cryptocurrency has failed to recover its position above $100,000, driven by downward pressure from recent tariffs implemented by the United States on other countries.

Hames_AZ asserts that the market will remain in a downtrend, with no hint of an upward movement, if Bitcoin continues to trade below key resistance levels. Sharing two possible scenarios for the cryptocurrency’s future trajectory, the analyst leaned towards a more corrective outlook, projecting that Bitcoin could retrace back to the support zone before initiating another upward move.

As indicated in the green area in his price chart, the analyst pinpointed Bitcoin’s support zone between $85,000 and $87,500. While Bitcoin is historically known for not staying in a downtrend for too long, the TradingView analyst still expects further breakdown in its price, highlighting that a decline at this time is a more probable scenario.

In the chart, the analyst also illustrates a descending channel pattern, where the price of Bitcoin is clearly moving within a downward-sloping channel, indicating a short-term downtrend. The Fibonacci level at 0.382 further aligns with the support zone, making it a strong potential area for a price reversal.

Based on the analyst’s projection, a bounce from this support would invalidate further bearish momentum. Additionally, the support zone serves as a critical demand area where buyers typically step in, reinforcing price stability.

Possible Bullish Scenario If Key Resistance Levels Are Breached

While sharing a bearish prediction of the Bitcoin Price to $85,000, Hames_AZ also presented an alternative bullish scenario that could propel the cryptocurrency to new all-time highs. The TradingView analyst believes that if Bitcoin can successfully break resistance levels between $97,000 and $102,500 and close above them, then the market should anticipate a continuation of its previous uptrend.

A confirmed breakout from this resistance area would signal stronger market dynamics and further growth for the Bitcoin price. Based on his analysis, he expects Bitcoin to rise as high as $120,000, surpassing previous all-time highs attained earlier this year.

Featured image from iStock, chart from Tradingview.com

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

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With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

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