A cryptocurrency market observer, Melika Trader, is signaling caution, citing a potential bearish formation that could impact Bitcoin’s value. This technical pattern suggests a possible dip for the dominant cryptocurrency, potentially reaching levels as low as $78,000, according to the analyst.
Bitcoin Price: Head and Shoulders Pattern Emerges
Melika Trader shared insights on TradingView, pointing out a developing head and shoulders pattern on Bitcoin’s price chart. The left shoulder and double head appear to be complete, with the right shoulder currently taking shape. This formation raises the prospect of a significant price decline for BTC if the pattern completes.
Trader anticipates a potential false breakout above the resistance zone between $87,000 and $88,000. Following this temporary surge, a sharp correction is expected, potentially driving Bitcoin down to around $78,000, which is identified as the initial support level.
Bitcoin’s recent climb past the $90,000 threshold, fueled by a weaker US Dollar, has generated optimism about a potential return to $100,000. Before any substantial correction, there remains a chance that BTC could rally as high as $98,000.
On-chain data analyzed by crypto expert Ali Martinez indicates that the next significant resistance area for Bitcoin lies between $95,600 and $98,290. This zone represents a substantial supply wall, as approximately 1.09 million BTC were acquired by 1.65 million addresses within this range. Bitcoin’s subsequent trajectory will hinge on whether these holders choose to retain or liquidate their holdings upon reaching this level.
Interestingly, cryptocurrency whales are actively adding to their Bitcoin holdings, a factor generally considered bullish for the cryptocurrency. Martinez reported that over 17,000 BTC have been withdrawn from crypto exchanges in the last week.
BTC Targets New All-Time High
Analyst Titan of Crypto projects a potential rally to $137,000 for Bitcoin, which would establish a new all-time high for the digital asset. According to the analyst, BTC has broken out of a bullish pennant pattern, confirmed by two successive strong bullish daily candles. If this pattern is validated, the predicted target is $137,000.
Egrag Crypto, another crypto analyst, suggests that a daily close above $93,000 would signal strong bullish momentum, increasing the likelihood of Bitcoin surpassing $100,000. Any concerns about a pullback would likely dissipate if the cryptocurrency closes above $103,000, the analyst argues.
Currently, Bitcoin is trading around $93,000, reflecting an increase of over 5% in the past 24 hours, according to CoinMarketCap data.