Several predictions for the price of Bitcoin in 2025 have emerged since the beginning of the year. While many experts expect the major cryptocurrency to build on its historic price action in 2024, some believe its value has reached its peak in the current cycle.
Prominent cryptocurrency trader on social media platform X – in his latest prediction – pointed to a significant drop in the price of Bitcoin. Below is the potential path to a steep BTC price correction over the next few weeks.
Is a 20% correction on the cards for the price of bitcoin?
Crypto analyst Ali Martinez moved to the X platform to share interesting bitcoin price analysis. According to cryptocurrencies, the leading cryptocurrency is at risk of a significant pullback to the price level around $78,000.
This bearish projection is based on the formation of a head and shoulders pattern on the 4-hour price chart. A head and shoulders formation is a technical analysis pattern characterized by three distinct price highs, including a higher “head” placed between two lower “shoulders”.
This chart pattern usually indicates a potential bearish reversal, signaling a move from an uptrend in price to a downtrend. This trend reversal can be confirmed when the price breaks below the neckline, which is the trend line connecting the swing lows between the heads.
The price of Bitcoin prints head-and-shoulders pattern on the 4-hour chart | Source: Ali_charts/X
As noted in the chart above, Bitcoin price recently tested the cutout around $92,000 before pulling back above $98,000. However, the price of Bitcoin seems to be returning to the $92,000 threshold.
Martinez noted that if BTC price returnssuccessfully breaks and closes below the neckline, the leading cryptocurrency could witness a correction as high as $78,000. This represents a drop of almost 20% from the current price.
On the other hand, a strong close above the $100,000 mark would invalidate the current bearish setup, according to the crypto analyst. A return to the six-figure valuation could see the market leader continue its bullish course and potentially reach new highs.
Bitcoin price at a glance
As of this writing, the price of BTC is just below 98,000, reflecting a decline of just 0.8% over the past 24 hours. According to data from CoinGecko, c top cryptocurrency is on the rise up almost 4% in a weekly time frame.
The price of BTC at $98,272 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
