A popular trader suggests three possible outcomes for Bitcoin based on a head and shoulders pattern, including a significant price drop, a bear trap, or a larger pattern formation.
The beginning of the new year 2025 can hardly be called prosperous for the cryptocurrency market. First, the price of teased us with a new all-time high breakout, which eventually ended with a lower high compared to the December peak, forming what many see as a head and shoulders pattern.One of the most popular technical analysis formations, the head and shoulders pattern, presents itself as three waves of growth, with the head being the middle and largest wave.
However, it is the shoulders that fail to reach the middle peak, signaling the current weakness of buyers. The pattern is ominous in that, after the second shoulder is formed, the price of the asset is in danger of breaking below the neckline and drawing down by as much as the head was worth.A popular trader with 50 years of experience, claims that the leading cryptocurrency is currently drawing a classic head-and-shoulders pattern. If validated, the price of BTC might see three outcomes from the current position. The first, according to the trader, is to complete the formation and trend to target around $76,000, which is over 18% below the current price.The second scenario is that the market might form a 'bear trap,' which is a figure of market manipulation, when the price dips, but only to prompt everyone to turn bearish and after that short squeeze upward. Brandt previously highlighted this option as the most likely.The third scenario is that the head and shoulders will turn into a larger pattern, which does not necessarily mean that it will be more bullish or more bearish.As for Brandt himself, patterns are not set in stone. As the trader notes, sometimes they work, but they often change or fail. But the fact that even experienced traders like Brandt are struggling to offer a concrete outlook on the current state of the market speaks for itself
BITCOIN HEAD AND SHOULDERS MARKET OUTLOOK TECHNICAL ANALYSIS TRADING
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bitcoin Price Could Drop to $80,000 if Head and Shoulders Pattern Forms, Analyst SaysA Bitcoin analyst predicts a potential price drop to $80,000 if a head and shoulders top chart pattern develops. He bases his analysis on technical and behavioral indicators, suggesting a pullback may test the validity of the recent breakout above $73,700.
Read more »
Bitcoin Price Prediction: Trader Sees Head and Shoulders PatternA seasoned trader warns of a potential head and shoulders top pattern for Bitcoin, suggesting a possible price drop to $78,000.
Read more »
BTC Price Hints at Bearish Reversal with Head and Shoulders PatternBTC's price action suggests a potential bearish reversal pattern, with prices possibly dropping to $75,000.
Read more »
Shiba Inu (SHIB) Paints Head and Shoulders Pattern: Possible ScenarioShiba Inu is in process of forming pattern that will determine its movement in future
Read more »
IBIT Sees Largest Single-Day Outflow, Bitcoin Faces ResistanceThe iShares Bitcoin Trust (IBIT) experienced its biggest single-day outflow on record, losing $332.6 million worth of Bitcoin. Despite this, IBIT saw strong inflows throughout 2024. Bitcoin is currently facing pressure at the $97,700 resistance level and there are signs of a potential head-and-shoulders pattern forming, which could lead to a significant correction.
Read more »
Michael Saylor Reacts to New 106k Bitcoin ATH With ‘I Will See You On The Moon’ BTC TweetBitcoin evangelist Saylor celebrates Bitcoin reaching a new historic peak
Read more »