Bitcoin's path to six figures may require a detour through lower price levels first, according to prominent crypto analyst Michael van de Poppe. The digital asset surged to $94,000 earlier this week, catching short sellers off guard and triggering widespread liquidations across futures markets.
Van de Poppe, who commands an audience of over 815,000 followers on X, presented a contrarian view to the prevailing bullish sentiment. His analysis suggests Bitcoin may need to retest support levels between $88,000 and $90,000 before mounting a sustained rally toward $105,000 later this month.
The analyst pointed to current market sentiment as a key factor in his prediction. He noted that while Bitcoin traded above recent resistance levels, the momentum may not be strong enough to hold the $92,000 mark. A breakdown below this level could trigger long position liquidations and create temporary downward pressure.
Market Structure Points to Volatility Ahead
The liquidation heatmap reveals concentrated positions on both sides of the market. Short positions cluster just below the $100,000 psychological barrier, creating potential fuel for an explosive move higher if that level breaks. Conversely, long positions accumulate near the $90,000 zone, suggesting vulnerability to downside moves.
At the time of writing, Bitcoin is trading at around $93,125, suggesting a 2.28% surge in the last 24 hours.
BTC price chart, Source: CoinMarketCap
Current price action shows Bitcoin trading within striking distance of $100,000. The asset needs only a single-digit percentage gain to reclaim this milestone. However, technical resistance at this level remains formidable, with billions of dollars in short positions set to liquidate upon a breach.
Van de Poppe emphasized that a correction to the $88,000-$90,000 range would not invalidate the broader uptrend. Lower timeframe indicators continue to signal bullish momentum, and such a pullback could provide an opportunity for bulls to reload before the next leg higher.
Divergent Views on Support Levels
Market participants have expressed mixed opinions on the analysis. Some traders worry that losing the $92,000 level could trigger panic selling and accelerate losses. Others remain optimistic but focus on different technical levels as crucial support zones.
The recent price recovery liquidated numerous short positions, demonstrating the market's capacity for rapid reversals. This volatility creates both opportunity and risk for traders attempting to navigate Bitcoin's approach to six-figure territory.
Van de Poppe's forecast of a potential $105,000 peak in December represents a substantial gain from current levels. Such a move would require sustained buying pressure and likely depend on broader market conditions and institutional demand.
