Bitcoin Nears Critical Support – Will It Hold or Crash?

Bitcoin Approaching Key Support Levels

The recent decline in Bitcoin’s price has brought it to critical support levels that could determine its short-term trajectory. Analysts are closely monitoring the $70,000 level as the next significant support point. This level is crucial because a breach below it could signal further bearish momentum, potentially leading to additional declines in the $24K–$36K range, as observed by CurrencyDates.

Why would Bitcoin Price fall to $24K–$36K?

• An 80% correction would bring BTC down to the $36K region, which aligns with a monthly fair value gap (FVG) that has yet to be filled.
• A 90% correction would push BTC to the $24K zone, an untapped monthly demand zone.

The sentiment in the crypto market has shifted dramatically from optimism to extreme fear. This change is influenced by broader market selloffs and geopolitical risks, including concerns about U.S. President Trump’s tariffs and policies. These factors have contributed to increased volatility and uncertainty in the cryptocurrency markets.

Bitcoin CME Futures Gap at $78,000 is Nearly Filled

A significant factor influencing Bitcoin’s current price action is the Chicago Mercantile Exchange (CME) futures gap between $78,000 and $80,700, which was formed in November 2024. CME gaps occur when the futures market closes at a different price than it opens, often leading to a gap in the price chart. Traders closely monitor these gaps, as they tend to get filled over time.

As of now, BTC has almost fully closed this gap, aligning with traders’ expectations. The closure of this gap is significant because it can act as a magnet for price action, drawing the price toward the gap before resuming its previous trend. Additionally, there is another upside CME gap at $92,000, which could serve as a target if a relief bounce occurs.

Long-Term BTC Bottom Expected Around $76,000

Renowned analyst BitQuant has consistently maintained a mid-$70,000 price target for Bitcoin’s correction. He previously cautioned that the $90,000 level would not serve as reliable support and reiterated that BTC could still drop further before resuming an uptrend.

BitQuant’s analysis suggests that the long-term bottom for BTC may be around $76,000. This perspective aligns with the current market dynamics, where BTC is approaching these critical support levels. Investors and traders are advised to exercise caution and consider these levels when making investment decisions.

Large Buy Orders Between $70,000 and $80,000

Data from Binance Futures indicates that there are substantial buy orders totaling $1.8 billion between the $70,000 and $79,000 price range. These large buy orders can provide significant support and potentially prevent further declines in BTC’s price.

However, it’s essential to note that large buy orders can be manipulated. They can appear or disappear quickly to influence price movements, a tactic known as “spoofing.” Therefore, while these buy orders may offer temporary support, they do not guarantee a sustained price floor.

Crypto Liquidations and Market Volatility

The recent downturn in Bitcoin’s price has led to significant liquidations in the crypto market. Over $3 billion in long positions have been liquidated in the past five days, exacerbating the downward pressure on BTC’s price.

Keith Alan, co-founder of Material Indicators, warns that attempting to time the bottom in such volatile markets is risky, often referred to as “catching a falling knife.” He is monitoring for a wick to the trend line and strong buyer activity before confirming a price floor. This cautious approach underscores the importance of waiting for clear signals of reversal before entering the market.

Conclusion

Bitcoin’s recent price action highlights the inherent volatility and complexity of the cryptocurrency market. As BTC approaches key support levels, traders and investors must remain vigilant and informed. The near completion of the CME futures gap at $78,000, the presence of large buy orders between $70,000 and $80,000, and significant liquidations all contribute to the current market dynamics.

While some analysts anticipate a potential bottom around $76,000, it’s crucial to approach such predictions with caution. Market conditions can change rapidly, and external factors, such as geopolitical events and regulatory developments, can have unforeseen impacts on Bitcoin’s price.

In this environment, prudent risk management and a thorough understanding of market indicators are essential for anyone involved in the cryptocurrency market.