Since the beginning of the year, several predictions have emerged for the price of Bitcoin in 2025. While many experts expect the major cryptocurrency to build on its historic price action in 2024, some believe its value has reached that point. At the top of the current cycle.
A leading crypto trader on social media platform X has – in his latest prediction – made a significant bearish call for the price of Bitcoin. Below is a possible path to a deep correction for the price of BTC in the next few weeks.
Is a 20% correction on the cards for Bitcoin price?
Crypto analyst Ali Martinez took to the X platform share An interesting analysis of the price of Bitcoin. According to Crypto Pundit, the flagship cryptocurrency is at risk of a significant pullback around the $78,000 price level.
This bearish projection is based on the formation of a head-and-shoulders pattern on the 4-hour price chart. A head and shoulders pattern is a technical analysis pattern characterized by three distinct price highs, including a higher “head” set between two lower “shoulders”.
This chart pattern usually indicates a potential bearish reversal, signaling a change from an upward price trend to a downtrend. A trend reversal can be confirmed when price breaks below the neck, which is a trendline connecting the troughs (swing lows) between the heads.
The price of Bitcoin prints head-and-shoulders pattern on the 4-hour chart | Source: Ali_charts/X
As seen in the chart above, Bitcoin price tested the neckline around the $92,000 area before bouncing back above $98,000. However, it appears that the price of Bitcoin has returned to $92,000.
Martinez noted that J Price of BTC returnsSuccessfully breached, and close below the neckline, the flagship cryptocurrency could see a correction to as low as $78,000. This represents a drop of around 20% from the current price point.
On the upside, 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 prompt the market leader to resume its bullish run and possibly reach new highs.
Bitcoin price at a glance
As of this writing, the price of BTC sits just below 98,000, representing a decline of just 0.8% over the past 24 hours. According to data from CoinGecko, the The premier cryptocurrency has risen By about 4% on a weekly time frame.
The price of BTC at $98,272 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured images from iStock, charts from TradingView
