Bitcoin Price Prediction: Will BTC Rally or Face Deeper Fall?

Market Volatility Tests Bitcoin's Next Bullish Breakout

Bitcoin (BTC) price is under scrutiny on whether the recent pullback is a sign of the crypto's continued correction or a springboard to the next upswing. The leading global cryptocurrency has seen increased volatility over recent sessions, with analysts presenting varied interpretations. Amid mixed sentiment, the broader price outlook depends on whether BTC can defend its short-term supports and repeat its cyclical surge.

More so, analysts compare this retracement phase to previous pullbacks where bull markets dipped only to rise to new all-time highs. Others warn that institutional action and intraday sales could prolong the short-term stress till recovery returns.

Historical Rhymes Shape Bitcoin Price Prediction

Analyst Galaxy identified that the long-term Bitcoin chart formed a repeating structural rhythm. The comparison is between the recent price action and the two earlier drawdowns of approximately -33%, both of which were followed by strong rallies. Bitcoin currently trades around the $104,000-$106,000 zone, where previous corrections liquidated speculative positions and preceded significant surges.

BTCUSD 1D CHART | SOURCE: X

Furthermore, key supports rest at $94,600, $68,000, and $45,700, all historically significant accumulation zones. The analyst shows that every steep correction in previous cycles has served as a reset before continuation. This structural symmetry implies that BTC is within a healthy rebalancing phase rather than a full-scale bearish reversal. If momentum stabilizes, the token could recover toward $120,000 in the next rally.

Short-Term Shakeout: The Intraday Drop

According to another chart by analyst Barchart, Bitcoin fell 1.9% in the day to $104,830. The decline on the 5-minute timeframe indicates the presence of a great selling force, which is likely a result of cascading liquidations.

BTCUSD 5. CHART | SOURCE: X

Despite the instant decline, analysts see this as a sign of a possible liquidity flush and not structural collapse. Such sharp drops in the past signaled local bottoms when combined with high trading volumes. Traders' focus is now on the $104,000-$105,000 zone for stability, where a rebound could indicate new purchasing momentum within the broader bullish framework.

Institutional Pressure and Market Reactions

Additionally, analyst 0xNobler noted that a liquidation of 24,000 BTC by BlackRock, valued at about $2.75 billion, could have fueled the recent volatility. The consecutive red candles on the 15-minute chart indicate rapid breakdowns through short-term support as the market assimilated massive institutional outflows. Such synchronized trading, each moving around 300 BTC, is a rebalancing of the ETF portfolio rather than a panic sell.

SOURCE: X

These types of institutional actions usually cause short-term dislocations before the price stabilizes. Should Bitcoin price hold the range of $105,000 and bounce back with volume confirmation, the correction could be halted rapidly. However, constant outflows could invalidate the subsequent breakout.

Despite the current volatility, this Bitcoin price prediction shows a well-known pattern, where massive corrections are followed by huge rallies. BTC could either stabilize or fall further in the near term, but history suggests that patience through turbulence could pay off for long-term holders.