How much can the Bitcoin price drop?

Bitcoin (BTC) is attempting to hold on at a critical support zone between 107,000 and 110,000 dollars. Losing this area could lead to a deeper correction in prices. After the sharp wave of selling experienced last week, recoveries remained weak. Over the weekend, Bitcoin fell to 105,000 dollars before making a jump to 116,000 dollars, but this movement turned out to be short-lived contrary to expectations. Currently, the price is trading around 110,000 dollars, which is facing a critical test.

This critical support zone coincides with the peaks seen in December-January period and the lows experienced in September. Additionally, the 200-day moving average is also positioned at 107,500 dollars. According to CoinDesk analyst Omkar Godbole, a potential break below this level could increase selling pressure again. In that case, the first strong support emerges at 98,330 dollars. If this level is lost as well, there is a possibility that the price could drop to the lower band of the rising channel, which is 82,000 dollars.

Godbole notes that Bitcoin has shown overbought signals in the upward channel structure it has maintained since 2023. The price failing to hold after testing the upper band of the channel several times in recent weeks indicates that buyers are losing strength. A similar situation experienced in the December-January period resulted in the price declining to 75,000 dollars. However, despite all these negative indications, hope is not completely lost in the market. According to Godbole, a strong buying response from the 107,000-110,000 dollars range followed by a close above 116,000 dollars could signal the beginning of a movement that might take Bitcoin back to record levels.