Bitwise Predicts Bitcoin Dip Below $100K Before New All-Time Highs in 2024

• Why Bitcoin Might Experience a Final Shakeout Before New Highs
• Critical Levels to Watch in Bitcoin's Next Move
• How Altcoins Could React to Bitcoin's Volatility
• Market Mechanics Behind the Potential Correction
• Long-Term Implications for Crypto Investors
• FAQ: Understanding Bitcoin's Potential Price Movement

Bitwise's Chief Investment Officer anticipates a final "flush" in Bitcoin's price, potentially dipping below $100,000 to shake out overleveraged positions before resuming its bull run. This temporary correction WOULD create healthier foundations for the next leg up, with key levels to watch between $98K-$100K (support) and $110K-$113K (resistance). The analysis suggests this is a natural market cleanse rather than a trend reversal, with altcoins likely to experience amplified volatility during this phase.

Why Bitcoin Might Experience a Final Shakeout Before New Highs

Markets often need to purge excess speculation before major moves, and Bitcoin's current setup shows classic signs of an impending flush. When prices break visible support levels (like $100K), it triggers cascading liquidations of overleveraged long positions. I've seen this play out repeatedly since 2017 - the resulting drop looks scary in the moment but actually creates healthier technical foundations. The Bitwise team notes three confirming signals for this scenario: declining open interest in derivatives, neutral/negative funding rates, and stabilizing ETF flows. These indicators collectively suggest the market is preparing for a reset.

Critical Levels to Watch in Bitcoin's Next Move

For active traders, these are the make-or-break zones according to TradingView data:

• Support Cluster: $98,000-$100,000 (where institutional buy orders likely accumulate)
• Resistance Ceiling: $110,000-$113,000 (previous local top acting as psychological barrier)

What fascinates me is how these levels interact with market psychology. A clean break below $100K with strong volume could trigger the flush scenario, while sustained closes above $113K might accelerate toward $130K-$180K targets. The BTCC research team emphasizes watching derivatives data for confirmation - particularly whether open interest declines post-drop (showing real deleveraging) and if funding rates stay neutral.

How Altcoins Could React to Bitcoin's Volatility

History shows altcoins typically overcorrect during Bitcoin's flush phases, sometimes dropping 2-3x more than BTC. However, this also creates prime entry points for fundamentally strong projects. If we get the bullish alternative scenario (BTC holding $100K), mid-cap alts with clear roadmaps could outperform. Personally, I'm watching interoperability tokens and AI-blockchain hybrids as potential leaders in either outcome.

Market Mechanics Behind the Potential Correction

This isn't about weak hands - it's about market hygiene. When futures premiums over spot prices get too high (as they are now), the market becomes vulnerable to long squeezes. The Bitwise CIO's "flush" prediction refers to this necessary cleansing of speculative excess. Interestingly, CoinMarketCap data shows similar patterns preceded Bitcoin's major rallies in 2017 and 2021, where brief 20-30% drops gave way to stronger uptrends.

Long-Term Implications for Crypto Investors

While short-term traders focus on these technical levels, long-term holders should view potential dips as accumulation opportunities. The underlying bullish thesis remains intact according to on-chain metrics like stablecoin liquidity and miner behavior. As someone who's weathered multiple cycles, I've learned these shakeouts separate emotional investors from strategic ones.

FAQ: Understanding Bitcoin's Potential Price Movement

What exactly is a "flush" in crypto markets?

A flush refers to a rapid price drop that liquidates overleveraged positions, effectively "cleaning out" excessive speculation from the market. It typically involves breaking key support levels to trigger stop losses.

Why would Bitcoin drop before going higher?

Markets need periodic resets to maintain healthy structure. Removing excess leverage creates more sustainable uptrends by eliminating unstable positions that could cause larger collapses later.

How low could Bitcoin go in this correction?

The $98,000-$100,000 zone represents major support. While drops could extend briefly below this range, sustained trading under $95K would invalidate the current bullish framework.

What are the best indicators to watch during this period?

Track derivatives data (open interest, funding rates), ETF flows, and spot market depth. These show whether the drop represents healthy deleveraging versus fundamental weakness.

Should altcoin investors be worried?

Altcoins will likely drop more than bitcoin initially, but projects with strong fundamentals often recover fastest. This volatility creates both risk and opportunity.