Analyst: Bitcoin May Plunge to $68K Before Reaching $125K

Bitcoin Recovers Above $80,000, But Analysts Warn of Potential for Deeper Correction

Bitcoin has staged a recovery from its recent dip below the $80,000 mark, now trading a couple of thousand dollars higher. However, the threat of another significant correction has not entirely dissipated, according to market observers.

Key Resistance and Potential Downside

Analysts are closely monitoring the $84,000 level as the immediate resistance for the current recovery. Meanwhile, one longer-term scenario suggests that the cryptocurrency could first plummet to $68,000 before embarking on a renewed push towards its 2025 all-time high.

Daan Crypto Trade highlighted that Bitcoin managed to sweep liquidity while still preserving its daily closing price, characterizing the recent movement as a prime example of the importance of waiting for candle closes. However, the analyst cautioned that the recovery needs to gain further momentum, which has not yet materialized.

According to Daan Crypto Trade, Bitcoin must reclaim at least $84,000 in the coming trading sessions. Failure to do so and remaining below this level could expose the asset to a further gradual decline. Conversely, a successful recovery above $84,000 would likely bring untapped highs in the $87,000 to $88,000 range back into focus.

This outlook aligns with Bitcoin’s recent price action, as the asset has repeatedly encountered resistance around the $84,000 area after experiencing declines toward $80,000. Weakening buyer pressure has amplified uncertainty surrounding the recovery attempt. Adding to the challenging macro landscape, a higher-than-expected September Consumer Price Index (CPI) reading was released earlier this week.

Bull Market Resilience and Fractal Analysis

Fellow analyst EGRAG CRYPTO suggested that investors should not necessarily view another substantial correction as an indication that the bull market has ended. Citing a 2023 fractal, EGRAG CRYPTO noted that Bitcoin previously underwent a 22% pullback before initiating its next major expansion phase. Applying a similar calculation to current price levels would imply a potential drop to $68,000.

EGRAG CRYPTO identified $84,800 as a critical 0.5 Fibonacci “battlefield” and $68,000 as a potential shakeout zone. This could precede a move towards $114,000-$125,000, provided the broader market structure remains intact.

Supply in Profit and Mixed Indicators

CryptoGoos offered an alternative perspective on the current market structure by analyzing Bitcoin’s supply in profit. This strategy involves accumulating when the percentage of supply in profit falls towards what is considered a historically significant support line, and then gradually taking profits once the metric surpasses 80%.

The analyst anticipates multiple local peaks throughout the current cycle rather than a single, uninterrupted vertical ascent. Other recent Bitcoin indicators have also presented a mixed picture. For instance, Bitcoin has remained above its 50-week moving average for several consecutive weeks, a development that some analysts interpret as a sign of a resilient broader recovery.

However, the cryptocurrency has repeatedly failed to break through the $86,000-$89,000 resistance region. Furthermore, over $1 billion in profits were recently realized after Bitcoin last surpassed the $87,000 level.