As we step into 2025, there’s no shortage of forecasts about Bitcoin’s future value. While a number of analysts are counting on the cryptocurrency to continue its upward trajectory through 2024, there are voices in the crowd suggesting Bitcoin might have peaked in this cycle.
A well-known crypto trader on the social media platform X has recently shared a rather gloomy outlook for Bitcoin. Let’s delve into what this could mean for BTC’s price over the upcoming weeks.
Could Bitcoin Experience a 20% Price Dip?
Crypto expert Ali Martinez recently shared an eye-opening take on Bitcoin’s price trajectory via X. He argues that Bitcoin may be headed for a considerable drop, possibly sliding down to the $78,000 mark.
This forecast leans on the head-and-shoulders pattern emerging on the 4-hour price chart. This pattern, a staple in technical analysis, features three distinct price peaks: a taller “head” flanked by two shorter “shoulders.”
Typically, a head-and-shoulders formation heralds a bearish reversal, indicating a shift from a rising to a declining trend. Confirmation of this trend reversal happens when the price breaks through the "neckline," the line connecting the dips between the head and shoulders.
As seen in the chart above, Bitcoin recently tested its neckline around the $92,000 mark before bouncing back to over $98,000. Nonetheless, it seems the price might revisit the $92,000 neckline.
Martinez points out that should Bitcoin manage to breach and close below this neckline, it could plummet to around $78,000, marking a nearly 20% fall from its current standing.
Conversely, if Bitcoin closes firmly above $100,000, Martinez believes the current bearish pattern would be nullified. This could allow Bitcoin to regain momentum, possibly surpassing previous highs and continuing its growth.
A Snapshot of Bitcoin’s Current Price
Currently, Bitcoin is hovering just below $98,000, suffering a modest dip of 0.8% over the past day. As reported by CoinGecko, this iconic cryptocurrency has seen almost a 4% increase over the last week.
BTC currently at $98,272 on the daily scale | Source: BTCUSDT chart on TradingView
Featured image courtesy of iStock, chart from TradingView.
