Bitcoin's (CRYPTO: BTC) recent rally could face a sharp downturn, with a prominent trader warning of a potential correction if the cryptocurrency fails to break the $100,000 resistance level.
The forecast, which points to a drop as low as $85,600 in a worst-case scenario, comes as Bitcoin shows signs of a cooling rally after nearing the critical $100,000 milestone.
On Nov. 23, chart analyst Ali Martinez flagged a bearish signal on Bitcoin's 12-hour chart using the TD Sequential indicator.
Ali predicted that Bitcoin could correct to $91,583, with a deeper drop to $85,610 if selling pressure intensifies.
The apex crypto is trading around $94,660 at the time of writing, down 1.6% over the past 24 hours.
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Altcoins such as Ripple (CRYPTO: XRP) and Dogecoin (CRYPTO: DOGE) are down over 5%, while Solana's (CRYPTO: SOL), Ether (CRYPTO: ETH), Cardano's (CRYPTO: ADA) and Binance's (CRYPTO: BNB) fell between 2% and 5%.
This market-wide retreat caused the overall crypto market capitalization to decline by 2.4%.
The volatility also hit crypto-tracked futures, with over $400 million liquidated in both long and short positions.
According to Coinglass data, $283 million in bullish bets and $156 million in bearish bets were wiped out over the past 24 hours.
Interestingly, small altcoins and midcap futures saw higher liquidation volumes than Bitcoin and Ether, suggesting increased risk-taking among traders.
The market correction comes against the backdrop of deteriorating sentiment in the cryptocurrency industry as Bitcoin failed to break the $100,000 threshold.
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