Bitcoin (BTC) Price Might Drop Below $75,000 if Key Resistance Fails

The crypto ecosystem is back in the red zone after showing brief price rebounds over the past few days.

This downward trajectory appears to threaten Bitcoin’s crucial $100,000 mark, according to analysis shared by popular crypto analyst Ali Martinez.

On Wednesday, October 22, the analyst issued a cautionary outlook on Bitcoin’s short-term trajectory. In his post, Ali warned that the leading cryptocurrency is facing a make-or-break moment around the $119,750 level.

Bitcoin bear cycle yet?

To support his prediction, the analyst shared on-chain data from Glassnode’s MVRV Extreme Deviation Pricing Bands, which shows that Bitcoin is currently trading below a key resistance point, at around $110,584 as of Monday.

While Bitcoin is struggling to reclaim the $119,000 level following its notable daily declines, the analyst predicted that failure to recover and hold above $119,750 could open the door for a correction toward $97,130.

Although a correction to $97,130 may seem moderate, Bitcoin is also at risk of a deeper bearish scenario that could see it plunge to $74,500 if resistance at $119,750 fails.

The asset has experienced a deeper price plunge today, showing a notable decrease of 3.47% over the last 24 hours. Data from CoinMarketCap shows Bitcoin trading at $108,164 as of press time.

Furthermore, the MVRV metric showcased on the chart revealed Bitcoin hovering between the +0.5σ and mean deviation bands, suggesting that traders are exercising caution in their daily trades.

Notably, the metric measures Bitcoin’s market value relative to its realized value and is often used to identify overbought or oversold conditions in the market.

While this metric indicates a bearish outlook for Bitcoin’s potential price action, market watchers are increasingly concerned that the leading cryptocurrency might already be wrapping up its bull cycle—potentially ushering the rest of the altcoin market, including Ethereum and XRP, into a bear phase.