Bitcoin failed to maintain a key support level, signaling a potential deeper correction in the coming weeks. On Tuesday, the leading cryptocurrency tumbled below $90,000, marking a significant downturn that triggered billions of dollars in liquidations. Analysts at 10x Research had previously cautioned about this possibility, citing macroeconomic risks and tightening liquidity as major factors influencing the market.
At the time of writing, Bitcoin is trading at just above $88,700, down over 7% in the last seven days. Other major altcoins also remain in red as Ethereum trades above $2,400, SOL above $140, down nearly 10% this week.
Bitcoin Could Drop to $73K
According to 10X Research report, from a technical perspective, Bitcoin has formed a diamond top pattern, a structure often associated with trend reversals. This pattern suggests that the cryptocurrency could decline further, potentially reaching the $73,000 range—a level that aligns with previous summer lows. Market sentiment remains fragile, with short-term holders already facing losses, adding to the possibility of continued sell-offs.
Source: 10X Research
The analysts had also raised concerns about MicroStrategy’s recent inclusion in the Nasdaq-100 index, warning that it could turn into a “sell the news” event. Despite the company’s aggressive Bitcoin accumulation, BTC prices failed to sustain upward momentum. By December 19, 2024, 10x Research explicitly advised against buying MicroStrategy shares, citing overvaluation. Since then, the stock has dropped from $350 to $250, reflecting a 29% decline and reinforcing their cautious stance.
What’s Next for Bitcoin?
While the short-term outlook suggests further downside, historical trends indicate that Bitcoin has found support around the $73,000 level in the past. A potential market rebound could be on the horizon if macroeconomic conditions improve. Investors will be closely monitoring the Federal Reserve’s policy decisions, particularly in March, which could signal a shift in market dynamics.
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