Over the past week, the price of Bitcoin has been teetering between $117,000 and $120,000 due to an unsettled market. But a significant shift occurred when the premier digital currency plunged towards $115,000 following substantial coin transfers to centralized exchanges.
One notable market analyst has proposed an even grimmer forecast for Bitcoin’s price in the next few weeks. This prediction suggests that Bitcoin is merely at the start of a downward trend that could intensify in the forthcoming days.
Chartered Market Technician (CMT) Aksel Kibar, in a July 25 post on social media platform X, projected a bearish future for Bitcoin after its price dropped to $115,000 on Friday. According to Kibar, the leading cryptocurrency may be heading for a low of approximately $109,000 soon.
Kibar’s pessimistic outlook is based on the inverse head-and-shoulders pattern visible on the weekly Bitcoin price chart. This pattern, characterized by three unique price dips, includes a lower “head” placed between two higher “shoulders”. This pattern usually suggests a potential bullish breakthrough confirmed when the price crosses the neckline – a line linking the tops (swing highs) between the head.
However, according to Kibar, Bitcoin’s price breakout may not align with the standard breakout often seen in inverse head-and-shoulders pattern scenarios. Kibar argues that most head-and-shoulder breakouts are succeeded by pullbacks and retests, not direct rallies.
Historical data provided by Kibar demonstrates that, since May 2017, Bitcoin’s price experienced a retest or pullback (type 2 continuation) more often than a direct rally (type 1 continuation) following a head-and-shoulder pattern breakout. This trend supports Kibar’s bearish projection for Bitcoin’s price in the upcoming days.
If Bitcoin experiences a deeper correction akin to the type 2 continuation, it is likely to revert to the neckline, around the $109,000 level. Such a move would denote an over 5% drop from the current price point.
Despite a rough start to the day, the market leader appears to be gradually recovering from its recent fall to $115,000. At the time of writing, Bitcoin’s price stands at approximately $117,323, indicating a slight 0.6% decrease in the past 24 hours.
