Recent market instability has adversely affected Bitcoin’s valuation, leading to less than optimistic forecasts from top tier analysts. On March 6, Severino used X (previously known as Twitter) to caution that Bitcoin could be on the brink of a substantial pullback, potentially setting new record lows. He anticipates a drop to between $84,800 and $83,600.

This bearish prediction is reinforced by the recent emergence of an LTF Head and Shoulder pattern on the Bitcoin chart. This pattern, recognizable by its three peaks on a price chart, is a commonly used indicator of a possible shift from a bullish to a bearish trend.

As per Severino’s chart, Bitcoin’s price trajectory appears to form a symmetrical triangle with an internal wave-like structure labeled A-B-C-D-E. The triangle suggests a pattern of lower highs and higher lows, while the internal waves hint at sideways movement with a slight bias towards completing the triangle.

If the Head and Shoulder pattern holds true, Bitcoin’s price might descend to the triangle’s lower boundary around the mid $80,000 region. This would likely test the next crucial support area and complete the D wave of the chart.

Despite this potential drop, Severino also forecasts a possible rebound to new highs. After reaching the mid-$80,000 mark, Bitcoin could rally towards the E wave in the triangle, which is positioned around $90,000.

However, another deeper pullback may follow this rebound to $90,000. An arrow on the right side of Severino’s chart indicates a potential decline towards $83,600 to $80,200 after the E wave rally.

While some view this steep drop as the start of a bear market, others see it as a potential bear trap. ‘Crypto Caesar’, another market expert, suggests that this drop could merely be a bear trap, shaking out weak hands before a final bull run, with Bitcoin potentially peaking above $110,000 as the bull market concludes.

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