Will Bitcoin Price Clear This Crucial Resistance or Is $70,000 Crash Coming?

Bitcoin price has staged a strong recovery above $97,000 levels after falling under $93,000 after the US CPI data release for January on Wednesday. This volatility in the last 24 hours has triggered a strong $75 million in BTC liquidations. Market analysts are closely watching whether there’s enough bullish momentum to pull BTC above $97,530 or not.

Bitcoin Price Faces a Make-or-Break Situation

Prominent crypto analyst Ali Martinez has identified $97,530 as a critical resistance level for Bitcoin (BTC) in its current market trajectory. Martinez also cautioned that support below $92,110 is notably weak, highlighting a significant gap between $90,000 and $70,000.

This analysis suggests that if Bitcoin were to fall below the $92,110 level, it could face accelerated downward momentum due to the lack of strong support in the $20,000 range as shown in the below image.

Crypto analyst Rekt Capital has shared a similar opinion noting that Bitcoin price is once again nearing the pivotal light blue resistance level (in the below image) at $97,700. For the cryptocurrency to confirm its bullish trajectory, it must secure a daily close above this level or perform a successful retest. A breakthrough at this key resistance point could pave the way for continued upward momentum.

As of press time, the BTC price is trading 1.06% up at $96,753 with its daily trading volume up 32% to more than $48 billion. The Coinglass data shows that the 24-hour liquidations have surged to $76 million of which over $40 million is in long liquidation. The surge in US CPI for January led to major market turbulence on Wednesday.

Bitcoin Retail Wallets on the Decline

Blockchain analytics firm Santiment added that although top altcoins like Ethereum, and XRP, have seen their networks growing with the addition of new wallets, the same is not the case for Bitcoin.

Blockchain analytics firm Santiment has observed a decline in retail participation in cryptocurrency markets, attributing the drop to fears of further price declines across the sector. Historically, such retreats by small traders have signaled potential positive outcomes for mid- to long-term Bitcoin price performance. According to Santiment, large holders, including whales and sharks, often take advantage of these periods of fear, accumulating assets at discounted prices.

BTC Whale Accumulation Is Surging

On the other hand, the Bitcoin whale accumulation has been on the rise recently. Whale activity in Bitcoin’s spot market has surged to a multi-year high, as indicated by a steady rise in the Exchange Whale Ratio since late 2024.

While market momentum has recently cooled, historical trends suggest that reduced whale deposits on exchanges often precede Bitcoin rallies. This development could hint at a potential shift in market dynamics, with investors closely watching for signs of renewed upward momentum for Bitcoin price.

On the other hand, the discussions around Bitcoin strategic reserves persist even today. VanEck’s Head of Digital Assets, Matthew Sigel, forecasts that proposed Bitcoin reserve bills could inject $23 billion in buying pressure, potentially leading to the purchase of 247,000 BTC if implemented.