|

This is how low Bitcoin can go

  • Bitcoin price shows clear signs of bearish continuation.
  • Another 40% to 50% drop is increasingly probable.
  • Upside potential is limited in size and scope.

Bitcoin price continues to display substantial weakness, with further threats to the downside now in site.

Bitcoin price approaches new 17-month lows

Bitcoin price barely holds on to the $29,000 value area as support. $29,000 is where the 2021 lows, 61.8% Fibonacci retracement, and the bottom of the final high volume node in the 2022 Volume Profile currently exist.

BTC previously dropped below this zone during the flash crash on May 12, 2022. While there was some hope and evidence that a broader bullish reversal could occur, buyers were unable or unwilling to support Bitcoin price any higher.

Below $29,000 is a wide-open range that Bitcoin price could fall into. The primary support levels are as follows:

$23,000 – contains the 78.6% Fibonacci retracement at $23,300, the 100% Fibonacci expansion at $23,000, and a high volume node in the 2020 Volume Profile.

$15,000 – contains a high volume node in the 2020 Volume Profile at $15,300 and the 161.8% Fibonacci expansion at $14,500.

$9,000 to $11,000 – contains the 2020 Volume Point of Control at $9,300, 200% Fibonacci expansion at $11,000, and the top of the monthly Ichimoku Cloud at $10,300.

BTC/USD Daily Ichimoku Kinko Hyo Chart

For bulls, there are two reasons why an upswing should be expected. First, Bitcoin price is within the 180-day Gann Cycle of the Inner Year, which indicates a bullish bounce is highly probable. Second, measuring from the previous all-time high peak in April 2021 shows more than 400 days have passed. This is important because Bitcoin’s corrective moves often culminate within the 400 to 450-day range.

Any upside potential is likely to be limited to the 50% Fibonacci retracement and Kijun-Sen in the $34,000 value area.

Author

Jonathan Morgan

Jonathan Morgan

Independent Analyst

Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.

More from Jonathan Morgan
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Crypto Today: Bitcoin, Ethereum, XRP slide further as risk-off sentiment deepens

Bitcoin faces extended pressure as institutional investors reduce their risk exposure. Ethereum’s upside capped at $3,000, weighed down by ETF outflows and bearish signals. XRP slides toward November’s support at $1.82 despite mild ETF inflows.

Ripple eyes record high breakout in 2026 as Ripple scales infrastructure

XRP has traded under pressure, but short-term support keeps hopes of a sustainable recovery in 2026 alive. The launch of XRP ETFs and regulatory clarity in the US pave the way for institutional adoption.

Bitcoin risks deeper correction as ETF outflows mount, derivative traders stay on the sidelines

Bitcoin (BTC) remains under pressure, trading below $87,000 on Wednesday, nearing a key support level. A decisive daily close below this zone could open the door to a deeper correction.

Monero builds momentum amid bullish bets and looming resistance

Monero (XMR) trades close to $430 at press time on Wednesday, after a 5% jump on the previous day. The privacy coin regains retail interest, evidenced by heightened Open Interest and long positions.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.