Bitcoin (BTC) is showing the first signs of hesitation after a strong rally, positioning the market at a critical decision phase. A crypto analyst has shared details on whether the current pause reflects a healthy consolidation or a change in dynamics that could influence the broader crypto market.
Recent analysis by crypto analyst Tony Severino shows that Bitcoin is entering a critical decision phase, with price action indicating a maturing trend. His chart highlights a robust ascending pattern that has begun to slow, signaling a change in market behavior rather than an immediate price reversal. This moment is notably important not only for Bitcoin but for the broader crypto market, which often follows its lead.
Next up for the crypto market as Bitcoin reaches a key phase
Severino’s chart illustrates a steady rise in the price of Bitcoin, marked by higher highs and measured pullbacks, indicating that buyers have largely taken control. However, recent candles show slower momentum and smaller bodies, suggesting that BTC’s bullish strength is starting to weaken. The analyst said the market is currently testing whether buyers still have the strength to push prices to higher levels or whether Bitcoin’s uptrend has come to an end.
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Another key feature of the chart is the Doji candle which forms near the top of the trend. Severino notes that this candle should not be interpreted as a sell signal, but rather as a recognition by the market of the end of Bitcoin’s bullish certainty. The candle is also considered an early sign of hesitation, with multiple possible market consequences.
Severino explained that the market could enter a digestion period, where the price of Bitcoin consolidates while maintaining a larger uptrend. Alternatively, the pause could signal a distribution, with stronger hands beginning to transfer risk as BTC’s momentum fades.
Another possibility is a final push higher driven by renewed conviction and late-cycle momentum. In this scenario, Bitcoin could emerge from its current downturn and extend its gains before any further correction. Notably, Severino’s chart analysis does not confirm which direction the market might ultimately take, only that the next sequence should be decisive.
Bitcoin price at risk of falling to $35,000
In a separate post, crypto market expert Lofty warned that Bitcoin could extend its downtrend, potentially triggering a deeper price drop. He pointed out striking similarities between the current BTC cycle and the 2021 bull run, highlighting a Double Top pattern that preceded a significant price decline during the past cycle.
According to Lofty, if Bitcoin follows its four-year historical trend, its price could collapse to $35,000 in the next two weeks. Notably, the cryptocurrency has already completed its Double Top formation and is showing early signs of a prolonged downtrend. If the price drops to $35,000, that would represent a drop of over 60% from its current value of over $88,500.
