Bitcoin (BTC) has experienced increased volatility in recent weeks, initially influenced by Donald Trump’s proposed trade tariffs, and later intensified by the recent Consumer Price Index (CPI) data. The inflation report caused BTC to drop to a low of $94,000 before it began to recover some of its losses. However, crypto analyst Ali Martinez indicates that Bitcoin needs to defend a vital price level to prevent a significant correction.
Analyst Points Out Vital Bitcoin Price Level
In a post shared on X earlier today, Martinez highlighted the Pi Cycle Top Indicator. For those unfamiliar, the Pi Cycle Top Indicator is a tool used in the Bitcoin market to pinpoint potential market cycle peaks.
This indicator monitors the 111-day moving average (MA) and a multiple – generally 2x – of the 350-day moving average. Historically, when the 111-day MA crosses above the 2x 350-day MA, it signals a market peak.
Martinez notes that Bitcoin tends to undergo sharp price corrections when it drops below the 111-day MA, which currently sits at around $93,400. A decline beneath this level could initiate a significant downward trend.
Another crypto analyst, Merlijn The Trader, shared insights on Bitcoin’s recent price movements. The analyst presented a chart illustrating the similarities between BTC’s price action in 2021 and 2025.
The chart suggests that BTC is currently in the process of completing a bullish diamond pattern. Successfully finalizing this pattern and experiencing a bullish breakout could drive BTC to achieve new all-time highs (ATH) surpassing $120,000.
What Lies Ahead for BTC?
Crypto investor Daan Crypto Trades also examined Bitcoin’s latest price trends, particularly in relation to the CPI data. The report indicated that inflation remains high in the US, diminishing the chances of the Federal Reserve (Fed) making further interest rate cuts anytime soon. Daan observed:
A majority of the liquidity beneath was captured on the shorter time frames. There is substantial untapped liquidity above following all these lower highs in recent weeks. If BTC can reverse this local downtrend, that liquidity could serve as fuel for an upward move.
The investor also cautioned that if BTC falls below $90,000, it could enter a “danger zone.” This level has functioned as a significant support area, with Bitcoin rebounding from it on multiple occasions. A decisive breakdown past this point could heighten the risk of a larger sell-off.
Despite the recent bearish signals, Bitcoin has remained stable in the mid-$90,000 range. Nevertheless, some market participants express concerns about a potential drop to $80,000 if selling pressure escalates. As of this moment, BTC is trading at $95,324, down 1% over the past 24 hours.
