Many predictions for the price of Bitcoin in 2025 have appeared since the beginning of the year. While many experts expect the leading cryptocurrency to build on historical price action in 2024, some believe that its value has reached its peak in the current cycle.
A prominent cryptocurrency trader on the social media platform Below is the likely path for a sharp BTC price correction over the next few weeks.
Is a 20% correction on the cards for the Bitcoin price?
Cryptocurrency analyst Ali Martinez took to the X platform to do just that Share Interesting analysis of Bitcoin price. According to a cryptocurrency expert, the flagship cryptocurrency is at risk of a major decline to a price level of around $78,000.
This bearish forecast is based on the formation of a head and shoulders pattern on the 4-hour price chart. The head and shoulders formation is a technical analysis pattern characterized by three distinct price highs, including a higher “head” sandwiched between two lower “shoulders.”
This chart pattern usually indicates a potential bearish reversal, indicating a transition from an upward to a downward price trend. A trend reversal can be confirmed when the price breaks below the neckline, which is a trend line connecting the lows (swing lows) between the head.
The price of Bitcoin prints head-and-shoulders pattern on the 4-hour chart | Source: Ali_charts/X
As shown in the chart above, Bitcoin price recently tested the neckline around the $92,000 area before bouncing back above $98,000. However, Bitcoin price appears to be returning to the neckline at $92,000.
Martinez noted that if Bitcoin price returns, is successfully hacked, and closes below the neckline, the major cryptocurrency could see a correction of up to $78,000. This represents a decline of approximately 20% from the current price point.
On the flip side, a strong close above the $100,000 mark would invalidate the current bearish setup, according to the cryptocurrency analyst. A return to a six-figure valuation could see the market leader resume its upward trajectory and possibly reach new highs.
Bitcoin price at a glance
As of this writing, Bitcoin’s price is just below 98,000, reflecting a decline of just 0.8% over the past 24 hours. According to data from CoinGecko, the leading cryptocurrency is up nearly 4% on the weekly time frame.
The price of BTC at $98,272 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
Comments are closed, but trackbacks and pingbacks are open.