Speculation is rife about an imminent Bitcoin price crash following the transfer of over $3 billion worth of Bitcoin to exchanges within a single week. As Bitcoin struggles below the $100,000 resistance, on-chain analytics hint at potential further declines.
Recent data reveals that more than 33,000 BTC, totaling over $3.23 billion, have moved to exchanges since December 18, leading to an increase in Bitcoin reserves from 2.395 million to 2.428 million BTC by December 25. This surge in reserves coincided with a price drop from $105,000 to $98,400.
The rapid accumulation of Bitcoin on exchanges often signals that large holders, or “whales,” might be gearing up to sell, which historically has led to price corrections due to increased selling pressure. Analyst Ali Martinez has suggested on X that Bitcoin could see a significant dip to as low as $60,000, especially after breaking below the $97,300 support level where 1.51 million wallets had bought 1.49 million BTC.
For the bearish scenario to be negated, Bitcoin would need to reclaim the $97,300 support and close above $100,000, possibly driving a rally towards $168,500. Financial educator Tony Vays has also warned that Bitcoin dropping below $95,000 could lead to further declines, potentially reaching $73,000 or even triggering a major crash if it falls to $92,000.
Despite these short-term bearish signals, long-term optimism persists. Analysts predict new highs for Bitcoin, fueled by post-election optimism, with expectations that policies under Donald Trump might push Bitcoin prices significantly higher. Standard Chartered forecasts a new peak of $200,000 in 2025, while other experts like Robert Kiyosaki and Tom Lee predict valuations up to $350,000 and $250,000, respectively.
Currently, Bitcoin trades at $96,410, down more than 2% in the last 24 hours and 4% over the week. Technical indicators show Bitcoin above key moving averages but with an RSI suggesting a balanced market condition, not overbought or oversold.