Bitcoin Traders Divided: Anticipating a $70K Drop or a Rapid Price Rebound

Bitcoin traders split between $70K crash and BTC price rebound within days

As Bitcoin hovered around $88,000 on Sunday, traders prepared for potential fluctuations leading up to the weekly close.

Key Takeaways:

Bitcoin market participants are uncertain about the short-term price movements as BTC struggles to remain above $90,000.
Predictions for Bitcoin reaching six figures coexist with fears of a drop to $70,000.
Analysts cite Binance inflows as a significant concern for Bitcoin’s price trajectory.

Bitcoin market participants are currently divided regarding the short-term price movements of Bitcoin, with the cryptocurrency remaining under $90,000. Some traders are making predictions that BTC could reach six figures soon, while others are bracing for a potential decline back to $70,000. Analysis highlights that one factor raising concerns includes substantial inflows to Binance.

Are Traders Expecting a Bullish Breakout Soon?

Recent data from Cointelegraph Markets and TradingView revealed that Bitcoin's price showed slight shifts within a defined range over the weekend.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

For eight consecutive days, BTC/USD remained in a tight corridor of $5,000. The trading community has grown optimistic, anticipating a breakout soon, with crypto analyst and entrepreneur Ted Pillows noting on X that a "$BTC relief rally could happen soon."

BTC/USDC one-week chart with RSI data. Source: Ted Pillows/X

In his weekly analysis, Pillows compared the current bearish divergences of the relative strength index (RSI) with those during 2021, the final year of Bitcoin's last bull run. He stated that it is crucial for buyer pressure to prevent the 100-week exponential moving average (EMA) from crossing below the simple moving average (SMA) because similar occurrences in the past resulted in significant crashes of 40% to 50% within four to six weeks.

BTC/USD one-week chart comparison with 100 SMA, 100 EMA. Source: Ted Pillows/X

Trader Captain Faibik boldly predicted that Bitcoin would soon experience a bullish breakout, suggesting that many traders would rush in due to fear of missing out (FOMO). He claimed the BTC price correction is “complete.”

BTC/USDT eight-hour chart. Source: Captain Faibik/X

Another trading account, Korinek_Trades, mentioned potential new all-time highs for Bitcoin, though possibly after hitting a fresh macro low first, stating, “We should still see another higher high for blue W5 up to ATH to complete a 5 wave structure,” referring to Elliott Wave theory in predicting Bitcoin's movements.

BTC/USD one-week chart with volume data. Source: Korinek_Trades/X

Is Bitcoin Heading Back to $70,000?

Conversely, on-chain analytics platform CryptoQuant has projected a potential decline for Bitcoin back to previous highs around $70,000.

BTC/USD one-day chart with RSI data (screenshot). Source: CryptoQuant

CryptoQuant indicated that Bitcoin is currently "fragile" and might move toward areas where buyer interest is higher. They noted, "The next major downside target lies at the high-demand zone between $70,000 and $72,000, where stronger buyer interest is expected to emerge.” They also highlighted the increasing BTC inflows to Binance as a factor contributing to potential downward pressure.

“The combination of a technical breakdown below the $90K level and the injection of $1.4B worth of BTC into Binance significantly increases the probability of a corrective move toward the $70K–$72K demand zone,” the analysis summarized.

As the market awaits further developments, traders remain on alert, divided between optimism for a price rise and concern over a possible fall.