Bitcoin ‘Head and Shoulders’ Setup Raises Fears Of $80,000 Price Drop
While Bitcoin (BTC) remains range-bound — with price levels trading between $90,000 and $100,000 — some crypto analysts predict a price correction possible A bearish “head and shoulders” pattern is on the horizon as a bearish “head and shoulders” pattern forms on the daily chart.
Will Bitcoin drop to $80,000?
Experienced analyst and trader Aksel Kibar shared his thoughts on the recent BTC price action on X. in his postalThe Chartered Market Technician highlighted a possible head and shoulders pattern forming on BTC’s daily chart, with the cryptocurrency risking a drop to $80,000.
The analyst explained that a pullback could push BTC’s price into an expansion pattern that could eventually lead to a break above $73,600. However, Kibar emphasized that the head-and-shoulders pattern must be fully realized for Bitcoin price to see a significant correction. He said:
Just looking is not enough. It requires a breakout below the neckline to be achieved. There are many examples of head and shoulders tops failing, especially in steady uptrends that are well above the year-round average.
Other cryptocurrency analysts have a similarly pessimistic outlook on Bitcoin prices. For example, technical analyst Ali Martinez believes $92,730 is a key price level for the top cryptocurrency. According to Martinez, losing this level could push BTC into a “free fall zone” based on the UTXO Realized Price Distribution (URPD).
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For the uninitiated, URPD is an indicator that shows the distribution of Bitcoin’s Unspent Transaction Outputs (UTXOs) at different price levels, based on when they last moved. Essentially, it helps identify price areas where significant Bitcoin accumulation or spending occurs, providing insights into investor behavior and market sentiment.
Additionally, former Wall Street derivatives trader Tone Vays warn BTC trading below $95,000 would be “very, very bad” for the flagship digital asset. Likewise, noted trader Peter Brandt recently Highlight The risk of BTC breaking out of the “Expanding Triangle” pattern could drop to the $70,000 level.
While some analysts predict a possible price correction, others remain optimistic about Bitcoin’s long-term trajectory. Thomas Lee of Fundstrat Capital expected Bitcoin could soar to $250,000 by 2025. However, he also acknowledged that Bitcoin may see a short-term correction to $60,000 early next year before it enters a historic bull market.
The long-term bullish case for Bitcoin
While some analysts believe that Bitcoin may indeed face an imminent price correction, long-term price predictions remain extremely bullish. Crypto asset management company Sygnum Position Bitcoin could face a “demand shock” due to strong institutional interest in the asset, driving its price significantly higher.
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Earlier this month, Ali Martinez Highlight A “cup-and-handle” pattern may be forming on the Bitcoin chart. If this pattern emerges, it could spark new bullish momentum in the digital asset. As of press time, BTC was trading at $94,149, down 2.5% in the past 24 hours.
Featured images from Unsplash, charts from X and TradingView.com
