Although Bitcoin (BTC) is range-bound — trading between the $90,000 and $100,000 price levels — some crypto analysts are predicting a price correction. may due to the formation of a bearish head and shoulder pattern in the daily chart on the horizon.
Bitcoin to fall to $80,000?
Experienced analyst and trader Aksel Kibar reached out to X to share his thoughts on BTC's recent price action. in him postThe expert market technician highlighted a potential head-and-shoulders pattern forming on Bitcoin's daily chart, with a risk of the digital currency falling as low as $80,000.
The analyst explained that a pullback could push Bitcoin price into an expansion pattern that was completed by a break above $73,600. However, Kibar emphasized that the head and shoulders pattern must fully materialize for a significant pullback in BTC price to occur. He stated:
Seeing it is not enough. It should appear with a slit under the collar. There are many cases of head and shoulder fractures especially in the steady uptrend well above the annual average.
Other cryptocurrency analysts have shared a similar bearish outlook for Bitcoin's price. For example, technical analyst Ali Martinez identified $92,730 as an important price level for top cryptocurrencies. According to Martinez, a loss of this level could push BTC into “free fall territory” based on the UTXO Actual Price Distribution (URPD).
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For those unfamiliar, URPD is a metric that shows the distribution of unspent Bitcoin transaction outputs (UTXO) at different price levels, based on when they were last moved. Essentially, it helps identify price zones where significant BTC accumulation or spending has occurred and provides insights into investor behavior and market sentiment.
In addition, former Wall Street derivatives trader Ton Weiss warned That Bitcoin trading below the $95,000 price level would be “very, very bad” for the flagship digital asset. Similarly, recently the famous businessman Peter Brandt is highlighted Bitcoin risks a breakout from an expanding triangle formation, potentially falling to the $70,000 level.
While several analysts predict a potential price correction, others are optimistic about Bitcoin's long-term trajectory. Thomas Lee of Fundstrat Capital It is predicted Bitcoin can rise to $250,000 by 2025. However, he confirmed the possibility of a short-term correction to $60,000 early next year before Bitcoin enters a historic uptrend.
Long-term bullish case for BTC
While some analysts say Bitcoin may indeed be facing a price correction, long-term price predictions remain extremely bullish. Sygnum crypto asset manager brings up that BTC may experience “demand shocks” due to strong institutional interest in the asset, driving its price up significantly.
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Earlier this month, Ali Martinez is highlighted Potential formation of a “cup and handle” pattern on the BTC chart. If this pattern plays out, it could spark another bullish move for the digital asset. At press time, BTC is trading at $94,149, down 2.5% in the last 24 hours.
Featured image from Unsplash, charts from X and TradingView.com
