How low can the price of Bitcoin go?

After reaching an all-time high of over $108,360 on December 17, Bitcoin (BTC) prices have fallen more than 11% over the past four days.

This drop has led to questions about whether this level is a local high for BTC price and, if so, how much lower Bitcoin could go in the next few days.

Related: Bitcoin Well Support With New BTC Price Alert Includes $60K Zone

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December 2023 Bitcoin fractal hints at $88,000

Between December 2023 and January 2024, the BTC/USD trading pair showed a converging consolidation pattern, consolidating in the quadrilateral region ($39,000–$46,000).

After a major correction in the area, Bitcoin broke out of the range and rallied sharply to $66,000 in March 2024.

The current pattern shows similar price action, with Bitcoin consolidating between $88,000 and $102,000. From December 20, the price of BTC may undergo a correction in the lower border zone of the channel defined in the range of $88,000–$90,000.

If history repeats itself, Bitcoin could drop to $88,000 in early December, only to return to $102,000 resistance and beyond.

Popular trader Follis said he is targeting a loss of $120,000 if that happens.

Will Bitcoin Reverse the 30% Crash in November '21?

However, the Bitcoin fractal on the weekly time frame indicates that a broader price correction may be at play. BTC price is now showing signs of a bearish divergence reminiscent of the 2021 market high.

The difference is highlighted by the Relative Strength Index (RSI)'s low highs and BTC/USD's highs, indicating weakening bullish momentum and a potential price correction ahead.

The 2021 bearish divergence was preceded by Bitcoin's all-time low near $69,000, with the price finally falling to $15,000 by the end of 2022.

A similar divergence is now seen as BTC failed to maintain its position above $100,000.

So, on longer time frames, the key support to watch is at the 50-week EMA, which will be around $66,600 in January 2025.

BTC price eye local down around $97K

If Bitcoin successfully breaks out of the triangle support near $97,000 shown on the chart, it means that the cryptocurrency is already going down.

Related: Bitcoin Reserve Act Could End Crypto's 4-Year Boom-Bust Cycle

The triangle's horizontal resistance near $102,000 and trendline support moving toward $97,000 indicate that buyers are holding higher lows, a sign of underlying strength. If BTC breaks from this support, it could set the stage for a release above $102,000.

A confirmed copy from the triangle targets a bounce around $114,650, measured by adding the height of the triangle (~$12,000) to the breakout level. Such a move devalues ​​the immediate bearish divergence narrative and reaffirms bullishness.

However, a failure to hold support would strengthen the bearish divergence and open the door for a deeper correction to the stated levels below $90,000.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.