Bitcoin price is under renewed pressure as crypto analyst warns the market could be is heading for a sharp correction towards $52,000. According to the analyst, a Head and Shoulders formation has appeared on the chart, a technical pattern often associated with potential trend reversals and momentum on the downside. The setting suggests that if bearish pressure continues to growthe leading cryptocurrency could be at risk of a significant short-term decline, sparking new concerns in the broader market.
The price of bitcoin is predicted to fall to $52,000
The cryptanalyst, identified as NoName on Xu, has warned that Bitcoin could be headed for a new price drop near $52,000. The analyst pointed to head and shoulders pattern which formed on the chart from 2024 and continued even after BTC recorded its a record high above $126,000 in October.
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The chart showed that Bitcoin recently experienced a failed breakout after completing the right shoulder of the H&S formation. After this drop, the price of BTC started to climb again, aiming for a recovery level of 100,000 dollars.
Interestingly, NoName noted that many traders became bullish when Bitcoin started to bounce back, first from the $70,000 range. However, after its price moved towards psychological resistance level of $82,000BTC declined, confirming weakness in the market trend and structure of the cryptocurrency.
NoName further noted that the combination of broken support and strong resistance indicated this sellers are still largely in control BTC markets. The analyst added that while Bitcoin’s recent move toward $83,000 may have looked like a steady uptrend to many investors, it was not a true recovery. Instead, he described it as a temporary pause in price action that usually comes before a further decline.
Considering current market weakness and ongoing bear market, NoName projected that Bitcoin could eventually fall towards $52,000 if the H&S pattern continues to play out. He also warned that Bitcoin could fall even lower if selling pressure intensifies the last minus close to 30,000 dollarsas highlighted by the red shaded area on the chart. At current levels above $76,000, a drop to this area would represent a major price drop of more than 60%.
Analysts share similar bearish forecasts
Bitcoin is facing growing bearish sentiment as more analysts predict negative targets for the leading cryptocurrency. Market analyst Chiefy recently divided bearish outlook for X, highlighting a repeating four-year cycle on the BTC chart.
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A crypto expert stated that during those historical cyclical periods, BTC moved through a repeated sequence of growth, distribution, capitulation and cycle bottom phases. According to the analyst, the current market cycle is now entering the most dangerous phase of the streak.
Chiefy noted that Bitcoin is approaching a level where its key support could fail. He warned that the loss of that support could lead to stronger downward pressure and increased panic selling in the market. As a result, the analyst projected a potential drop to $50,000 if the current cycle continues to follow historical patterns. He noticed that this area aligned with the capitulation phase seen earlier four-year cycles.
Featured image from Getty Images, chart from Tradingview.com
