Three Essential Price Levels for Bitcoin: Experts Warn of Possible Drop Below $70,000

As the year began with a strong performance for Bitcoin (BTC), the cryptocurrency has recently faced notable resistance, leading to a temporary drop below $90,000 in recent days. Analysts are now examining key price levels that may impact Bitcoin's short-term movements.

Key Takeaways

Bitcoin dipped below $90,000 but is showing signs of recovery.
Analysts identify three critical price points: $89,200, $87,500, and the $94,000 to $95,000 range.
If BTC falls below $87,200, it could decline further to around $69,230.
Bitfinex whales are reducing their long positions, a movement often preceding market volatility.
Recent events, such as the US Supreme Court's ruling delay related to tariff issues, have contributed to Bitcoin's current price movement.

Bitcoin

Key Price Points for Bitcoin

In a recent update shared on social media platform X (formerly known as Twitter), market analyst Ted Pillows highlighted three vital price levels for Bitcoin's short-term trading. The first crucial level to watch is $89,200, a significant support level.

If Bitcoin's price falls below this point, Pillows believes it may decline towards the $87,500 mark. Moreover, he warns that consistently closing below $87,500 each day could indicate a major downward trend for Bitcoin in the near future.

On a positive note, Pillows notes that for Bitcoin to gain positive momentum, it must reclaim the $94,000 to $95,000 range. A daily close above this level might set the stage for Bitcoin to reach between $102,000 and $103,000.

Fellow analyst Ali Martinez also emphasizes the need for Bitcoin to stay above $87,200 to avert a possible drop towards $69,230, indicating a potential decline of about 24% if this occurs.

Currently, Bitcoin has seen a minor rebound, trading at $91,390, partially influenced by the US Supreme Court's decision to postpone a ruling on President Donald Trump’s tariff case—an event that may bring volatility to the cryptocurrency market.

Movements of Bitfinex Whales

In addition to technical price levels, a noteworthy trend is emerging that many analysts may be overlooking. Bitfinex whales appear to be aggressively unwinding their long Bitcoin positions. Analyst Ash Crypto points out that this type of “unwinding” has historically preceded significant market turbulence.

During a similar situation in early 2025, Bitcoin's price stalled near $74,000 but later saw a substantial recovery, rallying by approximately 50% to reach $112,000 within just 43 days.

Ash suggests that this current unwinding could indicate a similar pattern is about to unfold this month, potentially targeting price levels of $135,000 or more, leading to a new all-time high for Bitcoin.

According to various analysts, when Bitfinex whales "clear the books," they can alleviate the market pressure from large long positions, making it easier for price-hunting algorithms to reverse the trend upward.

Bitcoin

The daily chart illustrates Bitcoin's retracement below $90,000 and its recovery to current trading levels amid recent volatility.

Featured image from DALL-E, chart from TradingView.com