On January 7th, Bitcoin persisted in trading beyond the $100,000 mark following a volatile day on the stock market. Now the question is, where will its value head next?
Market analysts and traders offered their brief Bitcoin (BTC) price forecasts, with CryptoMoon Markets Pro and TradingView data verifying a 4% increase in value over the day.
Bitcoin “head and shoulders” ripe for failure
If the price of Bitcoin is climbing back towards $100,000, it could indicate that certain bearish predictions are no longer accurate.
One notable pattern visible among these, on a daily basis, is the ‘head and shoulders’ formation which unfolded throughout December.
Typically, an uptrend can be followed by three distinct points: three peaks, where the first and third are lower than the middle one. This central peak, or “head,” is higher than the two side peaks, which resemble “shoulders.” In Bitcoin terms, the latest all-time high of $108,000 represents the head in this pattern.
According to trader and analyst Aksel Kibar, it’s worth looking into the possibility that a head and shoulders reversal might not occur as expected.
In simpler terms, they stated in a specific discussion thread about Bitcoin (BTC) that it has formed a similar Head and Shoulders (H&S) pattern when viewed daily. Currently, the price is attempting to surpass the potential high of the right shoulder in this pattern.
“Breach can result in a pattern negation and should be considered bullish. H&S failure price target stands at 116K.”
Kibar noted that bears might cause a substantial drop in Bitcoin’s price, potentially bringing it close to its previous record high of around $73,800 from March 2021. However, such a decline might not completely halt the ongoing bullish trend.
If the H&S top manages to achieve its goal and the price rises to $80,000, it could still be a part of the correction that takes place after breaking through the resistance at $73,700,” he explained.
BTC price cup and handle breakout still in play
On the radar screen, we’re observing another pattern called the “cup and handle,” a significant formation for Bitcoin (BTC) against the U.S. dollar. At present, this pattern appears to be reaching a crucial juncture.
Upon revisiting the March peaks and surging further, several price corrections approaching $90,000 caused a sense of unease among traders, as they feared the potential breakdown of the otherwise bullish cup and handle pattern. However, optimism is resurfacing once more.
Trader Jelle recently shared with his audience that Bitcoin appears ready to finish its ‘cup and handle’ pattern, predicting a potential price of $140,000.
For Kibar as well, the structure continues to serve as a reliable long-term guide for navigation. According to CryptoMoon’s latest report, if things go according to plan, his monthly chart indicates a potential future value of $137,000.
Others have eyed the phenomenon for several months, with price targets varying.
In a recent post on December 31st, the commentator MartyParty reaffirmed that the anticipated weekly Cup and Handle target of $125,000 for Bitcoin (BTC/USD) remains valid, with the current trading price at approximately $94,000.
Fibonacci levels speak volumes
Looking at a broader perspective, Keith Alan, a partner at the trading resource Material Indicators, expresses worry about where exactly the bull market might reach its actual peak.
In my analysis this week, I observed that the recent upward trend was halted at a commonly recognized Fibonacci retracement level on X. The persistent influence of last year’s all-time high prices seems to have played a significant role in shaping the current market dynamics.
“This time it came from the 1.618 Fib,” he wrote about short-timeframe rejection.
“Once Bitcoin bulls push past this and return to price discovery making new ATH‘s, the next levels of resistance are also quite predictable.”
The mentioned ranges encompass both $110,000 and $122,500, which are figures previously introduced to the audience of CryptoMoon. (Cup and handle patterns being the reason for these specific numbers.)
According to Alan’s analysis, if the price keeps rising, the bottom end of the Lifetime Channel could act as a barrier preventing further price increases (or a ‘ceiling’), as suggested by the chart provided.
“Depending on timing, the cycle top lives somewhere between $120k, the lower end of Lifetime Channel, and technical resistance at the 2.618 Fib, 3.618 Fib or potentially the 4.618 Fib.”
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2025-01-07 13:35