Bearish Bitcoin Chart Pattern Means $76K BTC Price Before Trump Inauguration?
Bitcoin's price has been on a downward trend since reaching $108,353 on December 17th, and the recent dip below $92,000 has many analysts wary that confirmation of a bearish head-and-shoulders chart pattern is on the way.
A few daily closes below the pattern's neckline at $92,000 is likely following a drop in the pattern's target to $79,500.
Chartered Market Technician Axel Kibar has placed the price of Bitcoin (BTC) at $80,000 if the head and shoulders pattern is confirmed.
If the design works as high as H&S, the price target is 80k. This could be a drag to the expansion pattern that ended with a fault over 73.7 km. $BTCUSD pic.twitter.com/QbGi08AfcH
— Axel Kibar, CMT (@TechCharts) December 26, 2024
In terms of Bitcoin's day-to-day price action, recent dips to $91,500 have been entering bids, but each dip-buying situation is met by selling when BTC returns to the high range of the day.
Related: BTC Price ‘Split Confirmed?' 5 things to know in Bitcoin this week
According to popular crypto trader Skew, “Shorts are the key here” and “more aggressive shorting means the market is expecting an immediate crash” from Bitcoin's current range.
We already had $BTCP de-risking and hedging flow.
Shorts are the main trend here at the moment, look no further for the fierce short cut.
A more aggressive shorting means that the market expects an immediate breakout from the current value range.
Incidentally… pic.twitter.com/XgInc3xo3W
— Skew Δ (@52kskew) December 30, 2024
Skew emphasized the importance of the $94,000 level:
“I think not being able to recover $94K from the market is going to be a tough sell, which could lead to an eventual outflow.”
BTC/USD spot on Coinbase with spot and futures CVD. Source: Trdr.io
Basically, a series of four-hour closes during the trading day will be necessary to maintain the current range above $94,000. Last week, spot selling was the main activity in the market, and most of the perpetual futures market is tilted towards marginal shorts, so holding $94,000 as the lower range ($94,000–$99,000) would be the first step. A bearish head and shoulders pattern on the daily time frame.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
