Bitcoin’s price action could face a sharp correction, with analysts predicting a possible decline to $80,000 despite the ongoing bull market.
Aksel Kibar, a licensed market technician, shared his analysis on December 26, highlighting a “head and shoulders pattern” that could mean a significant decline in the price of Bitcoin.
“Breakout from the widening chart pattern completed at $BTCUSD… pullback may occur with a possible short-term H&S top,” Kibar wrote on X, formerly Twitter. “If the pattern acts as an H&S top, the price target is 80,000. This could be a pullback to the widening pattern that ended with a breakout above 73.7K.”
Kibar’s findings suggest that Bitcoin may test lower price ranges before finding stability, especially if the pattern continues to develop on the daily chart.
Whales and market trends signal optimism
Despite warnings of a possible correction, market data offers a glimmer of hope for Bitcoin bulls. Research from analytics firm Santiment suggests renewed interest from large investors, or “whales,” in transferring stablecoins to exchanges.
Source:X
“Following the overall post-Christmas market decline, crypto markets are seeing an encouraging trend of whales transferring stablecoins to exchanges,” Santiment explained in a Dec. 27 analysis. While the company noted that such moves were not a guarantee of immediate buying, they signaled optimism as the year comes to a close.
Santiment also observed that stablecoin deposits dominated exchange activity and interpreted this as a bullish sign that could strengthen Bitcoin’s recovery.
Resistance at key levels
Bitcoin struggled to maintain its momentum…
