BTC plunged after reaching 108,000! Analysts warn of pullback risks: key support level is here

After BTC surged to 108,000, analysts warned of the pullback risk.

BTC experienced a sharp fluctuation after the U.S. stock market opened last night (12/17). After briefly rising to a new high near $108,000, it quickly fell by over $2,000. As of the time of writing today, it continues to decline, currently priced at $104,764.

According to CoinGlass data, this pullback wave has liquidated $338 million in the cryptocurrency perpetual contract market, with approximately 140,000 people liquidated, and the liquidation volume of BTC reached $58 million.

Image source: CoinGlass cryptocurrency perpetual contract market liquidated $338 million

According to Cointelegraph, well-known analyst Rekt Capital pointed out that BTC is in the 7th week after breaking a historic high, and based on historical trends, there is usually a pullback risk in this phase.

He cited data from previous bull market cycles, pointing out that significant pullbacks occurred in the 6th to 8th week after the BTC bull markets of 2013, 2017, and 2021 broke new highs, with declines ranging from 16% to 34%.

If BTC pullback, 98,133 may be a support

On-chain data platform Whalemap analysis pointed out that from the on-chain data, the average price of over 150,000 BTC large holdings is around $98,133, which is likely to become a key support level during the pullback.

Source: X-Chain data platform Whalemap analysis pointed out that $98,133 may be a key support

Cryptocurrency trading company QCP Capital believes that although it is currently difficult to be bearish on BTC spot, the options market recently tends to sell options (put options) rather than buy options (call options), implying that investors are more inclined to hedge risks rather than chase upside.

Other analyst opinions: BTC short-term support falls at 96,000

Another trader, Josh Rager, holds a more optimistic attitude and advises investors not to worry too much about the short-term pullback risk. He predicts that the period from now until the summer of 2025 will be the golden period of the cryptocurrency market.

Senior analyst Rakesh Upadhyay of Cointelegraph pointed out that BTC is currently near the resistance level of the upward channel. If it can break through the current resistance level, the next target price may be $113,331, and even have the potential to challenge the $125,000 level.

However, if BTC falls below the 20-day Exponential Moving Average (EMA) (approximately $98,920), it indicates that the market is entering a pullback phase, with short-term support around $96,000.

Source: According to senior analyst at Cointelegraph, the short-term support line for BTC is around $96,000.

Although BTC faces the risk of pullback, analysts are still optimistic about the medium- to long-term trend of BTC. The short-term volatility is a healthy pullback and will not change the overall upward trend. Investors should stay calm, pay attention to key support levels, and manage risks effectively.

【Disclaimer】The market carries risks, and investments should be made cautiously. This article does not constitute investment advice. Users should consider whether any opinions, perspectives, or conclusions in this article are suitable for their specific circumstances. Responsibility lies with the investor.

After BTC surged to 108,000, it suddenly fell! Analysts warn of pullback risks: the key support level is here. This article was first published in 'Crypto City'.