Bitcoin ‘head and shoulders’ pattern risks $80K BTC price dip — Analyst

As a seasoned researcher with over two decades of experience in financial markets, I have learned to always approach predictions with a healthy dose of skepticism and caution. That said, the latest prediction by Chartered Market Technician Aksel Kibar suggesting that Bitcoin could fall as low as $80,000 in a bull market correction piqued my interest. While such a drop would be significant, I have seen markets do the unexpected more times than I can count.

In a recent forecast by a well-known chart analyst, there’s a possibility that the price of Bitcoin (BTC) could drop down to around $80,000 even within a bull market, which suggests a potential correction.

On December 26th, the Chartered Market Technician Aksel Kibar disclosed a Bitcoin price prediction close to its previous record highs in his latest posts.

BTC price teases uptrend reversal pattern

Over the past week, Bitcoin hasn’t been able to regain its $100,000 mark of support, and analysts predict possible price drops could take it down to as little as $90,000 or even the middle of the $60,000 range.

For Kibar, the reality could lie somewhere in the middle.

By examining the data on a daily basis, he identified potential signs of a head-and-shoulders formation – a well-known indicator suggesting a reversal in an upward trend.

He noted that Bitcoin might break free from its widening chart formation, which has now concluded on BTC/USD. This could potentially trigger a pullback, and if conditions are right, it may form a short-term Head and Shoulders top. If the ‘right shoulder’ of this potential pattern becomes more distinct…

“Keep this possibility on your watchlist.”

Another post mapped out how low BTC/USD could go should such a scenario play out.

Kibar added:

“If the pattern acts as a H&S top, the price target is at 80K. This can be the pullback to the broadening pattern that completed with a breakout above 73.7K.”

The general consensus from the analysis appears to support the idea that the correction may not reach such profound depths, a viewpoint that further strengthened Kibar’s stance.

Bitcoin whales hint at bull market return

Meanwhile, Bitcoin bulls have yet to gain sufficient momentum to fend off snap rejections at levels such as the 21-day simple moving average, currently at $99,425. 

The surprising revelation that incorrect TradingView data indicated Bitcoin’s market dominance as zero sparked interest among traders amidst the Christmas Day stock market decline.

However, despite the lack of bullish progress, there are signs of a crypto market comeback.

Following a downturn in the cryptocurrency market after Christmas, as reported by research firm Santiment on December 27, there’s been a positive pattern emerging: large investors (whales) are transferring stablecoins to cryptocurrency exchanges.

As a researcher, I’d express it this way: “Using our proprietary analytics tool, I observed that exchange deposits of stablecoins are predominantly controlling the flow.

Even if these whales don’t immediately intend to use this ‘dry powder’, it’s a positive indication because as we approach the end of 2024, this could be seen as a bullish signal.

In my analysis, following the reports from CryptoMoon, it appears that U.S. spot Bitcoin exchange-traded funds (ETFs) experienced a positive net flow following four consecutive days of “red” performance, during which over $1.5 billion was withdrawn collectively.

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2024-12-27 12:06