Bitcoin’s price is at a critical juncture as traders weigh the possibility of a surge past $106,000 or a decline to $85,000. The cryptocurrency’s next move will determine whether it enters a new price discovery phase or faces a deeper correction.
Market analysts remain divided, with some pointing to strong bullish momentum and others highlighting key support levels that, if breached, could trigger a sharper decline.
Bitcoin’s Battle at $106,000
For Bitcoin to confirm an uptrend, traders argue it must reclaim the $106,000 level—approximately a 13% increase from its current price of $96,350. Crypto trader Pentoshi noted in a Feb. 22 X post that a return to range highs at $106,000 would likely signal the next phase of price discovery.
Pentoshi Analysis on X. Source: Pentoshi on X
Some market watchers remain optimistic about Bitcoin’s upside potential. On Feb. 22, pseudonymous trader AshCrypto predicted a new all-time high by March, citing CoinGlass data showing that Bitcoin has historically averaged a 13.42% return in that month since 2013.
Bitcoin previously hit its all-time high of $109,000 on Jan. 20, just before Donald Trump’s presidential inauguration. A rally past $106,000 would put the cryptocurrency in striking distance of a fresh record, reinforcing bullish sentiment. However, the market remains uncertain as Bitcoin struggles to break through key resistance levels.
A Potential Drop to $85,000 Looms
Despite bullish calls, traders caution that Bitcoin remains at risk of a pullback. If the cryptocurrency falls below its $92,000–$94,000 support range, analysts point to $85,000 as the next major support level—a price Bitcoin has not seen since Nov. 12.
Pentoshi acknowledged the potential downside but maintained a bullish stance as long as Bitcoin remains in its current range. Other analysts, however, are more cautious. On Jan. 27, BitMEX co-founder Arthur Hayes projected a potential decline to the $70,000–$75,000 range, warning that such a move could trigger a “mini financial crisis.”
Pseudonymous trader Mister Crypto, who has 136,200 followers on X, indicated that he would wait for a drop to $90,000 before making his next major trade. Similarly, trader Donny noted that while Bitcoin’s current structure appears bullish, the coming weeks will be crucial in determining its next move.
Source: Mister Crypto X Post
Diverging Market Signals
Bitcoin’s price action is being closely watched by traders relying on a mix of technical and on-chain indicators. Analyst Ali Martinez highlighted a decline in on-chain activity, noting that the monthly average of new Bitcoin addresses has fallen below the yearly average. Such a trend suggests weakening network fundamentals and lower overall utilization.
Ali Martinez on BTC on-chain activity. Source: Ali Martinez on X
Meanwhile, whale activity has also raised concerns. Over the past ten days, large holders have offloaded more than 30,000 Bitcoin, signaling potential sell pressure. However, some traders remain confident in Bitcoin’s long-term trajectory. Crypto analyst Javon Marks pointAli Martinez on Xed to a hidden bullish divergence pattern that previously preceded major rallies, setting an ambitious target of $116,652—more than 20% above current levels.
Javon Marks analysis points to a $116,652 price level. Source: Javon Marks on X
Cathie Wood, CEO of ARK Invest, remains focused on Bitcoin’s long-term potential, increasing her firm’s forecast for Bitcoin reaching $1.5 million by 2030. Wood cited growing institutional adoption as a key driver despite recent volatility.
With Bitcoin hovering around $96,350, the market awaits its next decisive move. Whether the cryptocurrency breaks above $106,000 or retests $85,000, the coming weeks will likely shape its trajectory for the months ahead.
