The market\u2019s New Year rebound turned into a start-of-year retrace after Bitcoin (BTC) dropped from the recently reclaimed $100,000 support into the $94,000 territory. Amid the drop, an analyst shared his \u201ccautiously bullish\u201d outlook for BTC\u2019s price.<\/p>\n
On Tuesday, Bitcoin dropped below $97,000, dragging the market into the first pullback of the year. BTC began<\/a> 2025 trading around the $92,000 level but climbed around 6.5% in the following days.<\/p>\n After turning the $98,000 resistance into support over the weekend, Bitcoin jumped back above $100,000, reaching its highest price in weeks. However, BTC struggled to maintain this key support zone, dipping 3% in an hour yesterday.<\/p>\n The cryptocurrency has dropped another 2.5% in the past day, falling as low as $94,500 on Wednesday morning. Since then, BTC has hovered between $94,800 and $95,600, briefly testing the $96,000 resistance.<\/p>\n Crypto analyst Ali Martinez examined<\/a> BTC\u2019s recent performance. In an X threat, the analyst noted that Bitcoin had \u201cbreached the right shoulder of a head-and-shoulders pattern\u201d on Monday, invalidating the bearish setup pattern.<\/p>\n However, the reversal \u201cerased those gains, dragging BTC back below the right shoulder and reigniting bearish concerns,\u201d as this pattern could trigger a correction to at least $78,000. Martinez also pointed out that Bitcoin has fallen below a key demand zone, between $95,400 and $98,400, where 1.77 million addresses acquired over 1.53 million BTC.<\/p>\n The analyst suggested the price drop could force these holders to \u201csell some BTC to cut potential losses.\u201d He also noted there isn\u2019t significant resistance ahead for the flagship crypto, with only a minimal supply wall of 107,000 BTC between $104,700 and $105,770.<\/p>\n