Several predictions for Bitcoin price in 2025 have emerged since the turn of the year. While many experts expect the premier cryptocurrency to build on its historical price action in 2024, some believe that its value has reached its top in the current cycle.
A prominent crypto trader on the social media platform X — in his latest prediction — has made a significant bearish call for the Bitcoin price. Below is the potential path to a steep correction for the price of BTC over the next few weeks.
Is A 20% Correction On The Cards For Bitcoin Price?
Crypto analyst Ali Martinez took to the X platform to share an interesting analysis of the price of Bitcoin. According to the crypto pundit, the flagship cryptocurrency is at risk of a significant pullback to around the $78,000 price level.
This bearish projection is based on the formation of the head-and-shoulders pattern on the 4-hour price chart. The head-and-shoulders formation is a technical analysis pattern characterized by three distinct price highs, including a higher “head” set between two lower “shoulders.”
This chart pattern typically indicates a potential bearish reversal, signaling a transition from an upward price trend to a downtrend. This trend reversal can be confirmed when the price breaks underneath the neckline, which is a trendline connecting the troughs (swing lows) between the head.
The price of Bitcoin prints head-and-shoulders pattern on the 4-hour chart | Source: Ali_charts/X
As observed in the chart above, the Bitcoin price recently tested the neckline around the $92,000 region before bouncing back up to above $98,000. However, it appears that the Bitcoin price is headed back to the neckline at $92,000.
Martinez noted that if the price of BTC returns, successfully breaches, and closes beneath the neckline, the flagship cryptocurrency could witness a correction to as low as $78,000. This represents an almost 20% decline from the current price point.
On the flip side, a strong close above the $100,000 mark would invalidate the current bearish setup, according to the crypto analyst. A return to a six-figure valuation could see the market leader resume its bullish course and potentially reach new highs.
Bitcoin Price At A Glance
As of this writing, the price of BTC sits just beneath 98,000, reflecting a mere 0.8% decline in the past 24 hours. According to data from CoinGecko, the premier cryptocurrency is up by nearly 4% on the weekly timeframe.
The price of BTC at $98,272 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
Trending Products
