This article is also available in Spanish.
Although Bitcoin (BTC) remains range bound – trading between the $90,000 and $100,000 price levels – some cryptocurrency analysts are predicting a price correction. maybe The price will be in sight due to the formation of a bearish “head and shoulders” pattern on the daily chart.
Bitcoin will fall to $80,000?
Experienced analyst and trader Aksel Kibar took to X to share his thoughts on BTC’s recent price action. In his country maila certified market technician highlighted a potential head and shoulders pattern forming on Bitcoin’s daily chart, with the risk of the cryptocurrency falling as low as $80,000.
The analyst explained that a pullback could push BTC price into an expansion pattern that was completed with a breakout above $73,600. However, Kibar stressed that the head and shoulders pattern must fully materialize for a significant pullback in Bitcoin price to occur. He said:
Seeing it is not enough. It should be achieved with a breakout below the neckline. There are many failures of head and shoulders tops especially in consistent uptrends well above average throughout the year.
Other cryptocurrency analysts also shared similar bearish forecasts for Bitcoin price. For example, technical analyst Ali Martinez identified $92,730 as a crucial price level for the top cryptocurrency. According to Martinez, missing this level could push Bitcoin into a “free fall zone,” based on the UTXO Realized Price Distribution (URPD).
Related reading
For the uninitiated, URPD is a metric that shows the distribution of unspent Bitcoin transaction outputs (UTXOs) across different price levels, based on when they were last transferred. Essentially, it helps identify price areas where significant accumulation or spending of Bitcoin has occurred, providing insight into investor behavior and market sentiment.
In addition, former Wall Street derivatives trader Ton Weiss to caution That BTC trading below the $95,000 price level would be “very bad” for the major digital asset. Likewise, famous trader Peter Brandt recently Highlight Bitcoin risks a collapse from forming an “expanding triangle,” potentially falling to the $70,000 level.
While many analysts expect a potential price correction, others remain optimistic about Bitcoin’s long-term trajectory. Thomas Lee of Fundstrat Capital Expected That BTC could rise to $250,000 by 2025. However, he acknowledged the possibility of a short-term correction to $60,000 early next year before Bitcoin enters a historic uptrend.
The long-term bullish case for BTC
While Bitcoin may indeed be facing an imminent price correction according to some analysts, the long-term price outlook remains significantly bullish. Sygnum crypto asset manager Poses That BTC may experience “demand shocks” due to strong institutional interest in the asset, causing its price to rise significantly.
Related reading
Earlier this month, Ali Martinez Highlight Possible formation of a “cup and handle” pattern on the BTC chart. If this pattern plays out, it could lead to renewed bullish momentum for the digital asset. At press time, Bitcoin is trading at $94,149, down 2.5% over the past 24 hours.
Featured image from Unsplash, charts from X and TradingView.com
Comments are closed, but trackbacks and pingbacks are open.