Bitcoin could plummet to $72,000 if it fails to maintain the $100,000 mark, a leading analytics firm warned, after the cryptocurrency recently dipped below that key psychological level.
CryptoQuant, an on-chain analysis firm, alerted that the price of Bitcoin faces a significant risk of falling within one to two months if it does not stabilize above the $100,000 threshold. Julio Moreno, CryptoQuant’s head of research, stated that a break below this point could see the asset target $72,000.
The cryptocurrency experienced a notable decline earlier this week, briefly trading below $100,000 for the first time since June. It later recovered slightly to around $101,000, reflecting a 5% drop in 24 hours at the time of the report.
This current retreat aligns with a sustained deterioration in Bitcoin’s demand following a massive liquidation event on October 10. That event, considered the largest in crypto market history, saw over $20 billion in leveraged positions liquidated.
Since those liquidations, spot demand for Bitcoin has continued to contract. In the United States, investors have reduced their exposure, evidenced by negative flows in Bitcoin Exchange Traded Funds (ETFs) and a negative premium on Coinbase compared to other markets.
CryptoQuant’s Bull Score Index, which tracks market sentiment, currently stands at 20, indicating markedly bearish territory. Other market indicators have also declined, with the GMCI 30, a grouping of major cryptocurrencies, falling over 9% in a single day.
Sector-specific tokens, such as real-world assets (RWA) and Cosmos, also reported losses of 2.32% and 3.04%, respectively.
Last month, Geoffrey Kendrick, Standard Chartered’s global head of digital asset research, had anticipated that a fall below $100,000 was “inevitable” after the October liquidation event. He had suggested that macroeconomic and geopolitical advancements, particularly in U.S.-China trade talks, might prevent a re-breach of that mark.
However, the recent decline occurred outside his projected timeframe. Other experts suggest the market movement reflects a broader risk aversion affecting stock and commodity markets.
Gerry O’Shea, head of global market analysis at crypto asset manager Hashdex, pointed to speculation about a potential pause in Federal Reserve rate cuts, concerns over tariffs, credit conditions, and equity overvaluations as factors contributing to widespread market pressure.
Despite the recent pullback, O’Shea emphasized that the $100,000 level is primarily psychological and does not compromise Bitcoin’s long-term investment case. He noted that flows into ETFs and corporate adoption remain strong.
Traditional financial institutions are continuing to build infrastructure and digital asset products. These structural factors, combined with the possibility of increased liquidity if the Fed concludes its quantitative tightening, support the view that Bitcoin could reach a new all-time high in the coming months.
Analysts generally hold that while the market faces a significant correction, the Bitcoin ecosystem maintains solid fundamentals. On-chain metrics indicate growing maturity for the asset and a predictable pattern in long-term holders taking profits.
The coming days will be critical in determining whether the $100,000 support level holds or if the leading cryptocurrency will move towards the $72,000 zone as warned by CryptoQuant.