Will Bitcoin crash below $90k? 
Cryptocurrency Dec 20, 2024 Share
For the first time in many weeks, trading on Friday, December 20, raised the question of whether Bitcoin (BTC) will continue soaring like Led Zeppelin or if it will fall like a ‘lead zeppelin.’
Specifically, despite trading above $108,000 just days earlier – on December 17 – BTC collapsed to its press time price of $92,398 – a 9.52% 24-hour drop.
BTC 7-day price chart. Source: Finbold
Though the needle has moved somewhat in recent weeks, $92,000 has, on several occasions, been designated as the final stop before a plunge toward $85,000, most notably by the prominent cryptocurrency analyst on X, Ali Martinez.
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Can Bitcoin truly crash below $90,000?
Indeed, unless the momentum shifts significantly, Bitcoin is in significant danger of a deeper collapse as it has already fallen beneath the highest support zone near $95,000 and is testing $92,000. Should it plunge even lower, its next potential bounceback level would be slightly above $88,000.
Furthermore, as a cryptocurrency and stock analyst on X, Seth, who pointed out that the correction is ‘normal and healthy, also opined the immense liquidation in the early hours of December 20 could provide a ‘liquidations spring’ for a renewed rally.
#Bitcoin possible path. what do you think? This is the 12H chart. $BTC consolidation is normal and healthy. Been warning you about this since Nov.
Not financial advice
DYOR https://t.co/1luP6bYwDn pic.twitter.com/BBarkggJ0o— Seth (@seth_fin) December 20, 2024
Despite the seemingly dire situation, it is worth pointing out that the current BTC performance mirrors the coin’s reaction to other recent external calamities, and should the mirroring continue, it remains likely the cryptocurrency will rebound.
The press time downtrend was, by all accounts, triggered by the Federal Reserve’s hawkish announcements about 2025, detailing it now expects inflation will run higher and that there will be fewer interest rate cuts in the coming 12 months than was previously hoped.
Why Bitcoin can still rally in 2025
During 2024, Bitcoin provided a similarly violent and bearish reaction on at least three occasions when faced with external shocks. In both early August and early September, there were deep yet brief drops on the news of the weakness of the labor market and the manufacturing sector.
Similarly, BTC experienced a sharp downturn during ‘Operation True Promise 2,’ better known as the Iranian October missile attack on Israel.
These historical examples indicate that the current downturn will likely be ephemeral and that, in the long run, Bitcoin’s upward path remains unobstructed. Therefore, it is unlikely the recent price predictions placing the cryptocurrency at $250,000, $350,000, and even as high as $800,000 next year have been invalidated.
Simultaneously, they do open the doors to some longer-term concerns as, despite not annulling the 2024 bull market, they did debunk the argument that Bitcoin is a safe-haven asset akin to gold, at least for the time being.
Featured image via Shutterstock