Is Bitcoin in Danger? According to an analyst, breaking this price level might cause a lot of volatility.

Donald Trump's suggested tariffs on trade were the initial driver of the recent peak in volatility in Bitcoin (BTC), which was then compounded by the latest Consumer Price Index (CPI) figures. Prior to recovering some of its losses, Bitcoin dipped as low as $94,000 on the inflation figures. However, to avoid a severe correction, cryptocurrency analyst Ali Martinez indicates that Bitcoin must maintain a key price level.An analyst sets the critical level of the price of bitcoin.

Martinez brought to light the Pi Cycle Top Indicator in an X post earlier today. The Pi Cycle Top Indicator is a Bitcoin market indicator that attempts to identify market cycle tops for those who are new to it.

The indicator measures a multiple of the 350-day moving average, typically 2x, and the 111-day MA. Traditionally, a top in the market is signaled when the 111-day MA goes above the 2x 350-day MA.

Martinez asserts that when Bitcoin is below the 111-day MA, it tends to experience intense price corrections many times. Currently, this moving average is just short of $93,400. Bitcoin could see a considerable drop if it goes below this mark.

Merlijn, another crypto analyst The trader shared their thoughts regarding the current state of the Bitcoin price. The following graphic, which was provided by the analyst, shows how the price action of Bitcoin in 2021 and 2025 is similar.

The graph shows that Bitcoin is currently completing a bullish diamond formation. A bullish breakout following this formation's successful completion could propel Bitcoin to new all-time highs (ATH) well above $120,000.

Where Will Bitcoin Go Next?

Bitcoin's latest price fluctuation was also analyzed by cryptocurrency investor Daan Crypto Trades, in particular in relation to the CPI figures. The Federal Reserve (Fed) will not lower interest rates further anytime soon, as the data confirmed that inflation in the US remains high. Daan noted:

The lower time scales were responsible for most of the liquidity down here. Following all these lower highs in the previous weeks, plenty of untapped liquidity is available higher. Should Bitcoin manage to reverse this local downtrend, those might become fuel for this move up.

Moreover, the investor warned that Bitcoin could go into a "danger zone" if price drops below $90,000. Bitcoin has frequently bounced back from this level, which has served as a key support area. The chances of a deeper sell-off may increase if there is a definitive break below it.

The value of Bitcoin has held steady in the mid-$90,000 range in spite of recent negative developments. Nevertheless, certain players in the market remain concerned about a fall to $80,000 in case selling pressure intensifies. Bitcoin is presently at $95,324, having lost 1% over the past day.

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