Bitcoin (BTC) could face a significant correction to $80,000, according to renowned market technician Aksel Kibar. The prediction comes as the cryptocurrency struggles to regain momentum after failing to sustain the $100,000 support level last week.
Potential Uptrend Reversal Pattern
Kibar highlighted the emergence of a potential head-and-shoulders (H&S) pattern on daily charts, a technical structure often associated with trend reversals. He noted that the development of a well-defined right shoulder could trigger a pullback, bringing Bitcoin’s price closer to $80,000.
“Breakout from the broadening chart pattern that completed on $BTCUSD… the pullback can take place with a possible short-term H&S top. (IF) the right shoulder becomes better defined,” Kibar stated in a post on X (formerly Twitter).
He further explained that if the H&S pattern plays out, the price target could align with a correction to the $80,000 level, marking a pullback to the broadening pattern’s breakout point above $73,700.
Broader Price Targets and Market Sentiment
Current downside targets for Bitcoin range from $90,000 to the mid-$60,000 range. However, Kibar’s analysis suggests the correction could stabilise around $80,000, closer to previous all-time highs. Responses to his insights indicate scepticism among market participants about the likelihood of such a deep pullback, reinforcing Kibar’s measured stance.
Despite these bearish signals, Bitcoin’s long-term bull market remains intact. Traders are closely monitoring key levels, including the 21-day simple moving average (SMA), currently sitting at $99,425. Snap rejections at this level have so far limited bullish momentum.
Whales Signal Possible Market Recovery
Amid the price uncertainty, there are indications of a potential crypto market comeback. Research firm Santiment reported an uptick in stablecoin deposits to exchanges, primarily driven by crypto whales.
“After the post-Christmas market-wide dip, crypto markets are seeing an encouraging trend of whales moving stablecoins to exchanges,” Santiment noted in a December 27 analysis. While this activity doesn’t guarantee immediate buying pressure, it’s seen as a bullish sign for the coming weeks.
Additionally, the US spot Bitcoin exchange-traded funds (ETFs) market recorded a modest inflow after four consecutive days of outflows exceeding $1.5 billion.
Erroneous Data Sparks Speculation
During the recent Boxing Day sell-off, traders were briefly alarmed by inaccurate TradingView data showing Bitcoin market dominance at 0%. The anomaly attracted significant attention but was later dismissed as a technical error.
Looking Ahead to 2024
As 2024 approaches, the crypto market faces a critical juncture. While technical patterns hint at a possible correction, broader market dynamics, including whale activity and ETF inflows, suggest underlying strength. Bitcoin’s ability to reclaim key resistance levels in the coming days will be crucial in determining its trajectory in the new year.
