Bitcoin ‘Head and Shoulders’ Setup Raises Fears Of $80,000 Price Drop – Details

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As a seasoned analyst with over two decades of experience in traditional and digital markets under my belt, I have seen numerous bull and bear cycles unfold. In the world of cryptocurrencies, I find myself constantly intrigued by the unpredictable yet fascinating nature of Bitcoin (BTC).

As a researcher delving into the cryptocurrency market, I’ve noticed Bitcoin (BTC) holding steady within its current range of $90,000 to $100,000. However, some analysts foresee a potential price correction looming due to the emergence of a bearish ‘head and shoulders’ pattern on the daily chart, a technical formation often associated with market reversals.

Bitcoin To Drop To $80,000?

Experienced analyst and dealer Aksel Kibar recently expressed his insights regarding Bitcoin’s recent price fluctuations on platform X. In his post, this certified market technician pointed out a possible developing head and shoulders pattern visible in the daily Bitcoin chart, indicating a potential risk of the cryptocurrency falling to around $80,000.

As a researcher, I’ve been closely monitoring the BTC market trends. From my analysis, it appears that the current pullback could potentially push Bitcoin’s price towards the broadening pattern that was completed with a breakout above $73,600. However, it’s crucial to note that for a significant pullback in Bitcoin’s price to occur, the head and shoulders pattern must fully materialize. This is the stance I’ve taken based on my observations.

A mere visual confirmation isn’t sufficient; it requires a significant drop that breaks the support level below the chart’s neckline. It’s important to note that there are numerous instances where head and shoulders patterns have failed, particularly in strong uptrends that are significantly above their year-long average.

Other crypto experts have expressed similar bearish views about Bitcoin’s price. For example, technical analyst Ali Martinez pinpoints $92,730 as a significant price point for Bitcoin. In his analysis, if this level is breached, Bitcoin could plummet into what he calls “free fall territory,” using UTXO Realized Price Distribution (URPD) as his basis.

For those new to this, URPD refers to a measurement that illustrates how Bitcoin’s Unspent Transaction Outputs (UTXOs) are dispersed among different price ranges, depending on when they were last activated. In simpler terms, it helps pinpoint areas in the price chart where substantial Bitcoin accumulation or spending took place, offering insights into investor actions and market psychology.

Furthermore, Tone Vays, a former derivatives trader on Wall Street, cautioned that if Bitcoin’s price drops below $95,000, it could be extremely negative for the leading digital currency. Similarly, Peter Brandt, a well-known trader, has brought attention to the possibility of Bitcoin breaking away from a ‘broadening triangle’ pattern, which might cause it to slide down to around $70,000.

Some analysts foresee a possible price drop, but others are confident about Bitcoin’s future growth path. Thomas Lee from Fundstrat Capital suggests that BTC could climb up to $250,000 by 2025. Yet, he also acknowledges the likelihood of a temporary dip to around $60,000 in early next year before Bitcoin embarks on a historic price surge.

The Long-Term Bullish Case For BTC

Although certain experts predict a possible short-term decrease in Bitcoin’s price, most long-term forecasts still indicate an optimistic trend. Crypto asset manager Sygnum suggests that high institutional demand for BTC could cause ‘surges’ in its value due to increased interest in the asset, potentially leading to significant price increases.

Recently, Ali Martinez pointed out a possible development of a ‘cup and handle’ pattern on Bitcoin’s graph. If this pattern materializes, it might spark fresh optimism for the cryptocurrency. Currently, Bitcoin is priced at $94,149, representing a 2.5% decrease over the last day.

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2024-12-28 10:34