Bitcoin is currently navigating a critical juncture as it approaches its all-time high, with analysts warning that a drop below $108,000 could initiate a bearish downtrend. Crypto analyst Daan Crypto Trades emphasized the importance of maintaining momentum, stating that a deviation back below $108,000 could be detrimental. Bitcoin recently reached $110,498 but has since retraced to $109,250, approximately 2.5% below its all-time high of $111,970.
Daan’s chart analysis suggests that if Bitcoin falls back toward $108,000, it could trigger a bearish downtrend, potentially pushing the price below $100,000 and possibly down as far as $96,000. Bitcoin hasn’t dropped below $100,000 since June 22, when it briefly touched $98,900 amid geopolitical tensions. A move back below this level would wipe approximately $2.67 billion in long positions. If Bitcoin falls to $99,445, approximately $2.7 billion in long positions will be at liquidation risk.
Several other analysts remain optimistic about Bitcoin’s uptrend. Crypto analyst Miles Deutscher expressed confidence, stating, “It’s very hard to be bearish here.” Crypto trader CryptoFayz suggested that if Bitcoin breaks its current all-time high of $111,960, it could continue its uptrend to $116,000. Similarly, 10x Research’s Markus Thielen predicted that this price level could be reached by the end of July, citing strong inflows into spot Bitcoin ETFs, uncertainty around the US Federal Reserve, and the rapid decline of Bitcoin supply on crypto exchanges.
However, Daan noted that Bitcoin’s current consolidation phase differs from earlier ones in this cycle. “It is still following the same pattern where it stalls, deviates below, retakes the range and then grinds higher,” he said, adding that it is missing “the actual breakout and continuation.” McKay Research founder James McKay also commented on the consolidation phases, stating, “The longer we have these periodic, multimonth consolidations, the more it’s going to take us off the beaten [path] with respect to the typical four-year cyclical behaviour.”
Bitcoin’s price has stabilized near $108,000, with significant inflows into Bitcoin ETFs last week. Analysts predict that Bitcoin will trade within the $108,000 to $112,000 range unless there is a breakout above $114,000. However, the cryptocurrency is struggling to maintain levels above $105,000, indicating potential volatility. The stability of Bitcoin’s price is crucial as it holds above $108,000 to avoid a bearish spiral. If the price falls below this threshold, it could trigger a downward trend, leading to further losses. The market is closely watching Bitcoin’s performance as it navigates through this critical price level.
