Cryptocurrency analyst Justin Bennett is sounding the alarm on Bitcoin’s short-term trend, warning of a potential double-digit correction if a key price level fails to hold.
Also he shared insights with over 63,000 subscribers, highlighting $106,000 as the crucial support to monitor.
Breakdown Below $106K Could Trigger Multi-Level Drop
Bennett stated that Bitcoin’s recent structure hints at a possible bearish reversal. Should BTC lose its grip on the $106,000 level, he sees a high probability of the market sliding to multiple downside targets.
“If we get a confirmed breakdown, the first target sits near $101,000,” said Bennett. “If that fails, the market could move down to $100,000, and possibly to $97,000 or even $92,000 in the worst-case scenario.”
He noted a visible imbalance in Bitcoin’s price chart that would likely be filled if the bearish momentum takes hold. The warning comes as BTC trades around $107,560, still holding roughly 4% below its all-time high near $112,000.
Bullish Reversal Needs a $110K Recovery
Despite the looming downside risk, Bennett outlined a bullish invalidation scenario. If Bitcoin can reclaim $109,000 and close above $110,000 on the daily chart, he believes the breakdown thesis would be invalidated.
“A close above $110K flips the outlook. It shifts momentum back to the bulls,” he explained.
Current Market Position
Bitcoin remains in a tight range between $106,000 and $112,000, with traders awaiting confirmation of direction. For now, all eyes are on the $106,000 zone — a break below it could unravel short-term bullish hopes and expose the market to a steep correction.
Until then, Bitcoin’s next major move will likely hinge on whether bulls can defend this support or bears seize control.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/bitcoin-faces-breakdown-risk-below-106k-warns-analyst/