Several predictions regarding the price of Bitcoin in 2025 have emerged since the start of the year. While many experts expect the leading cryptocurrency to build on its historic price action in 2024, some believe its value has peaked in the current cycle.
A prominent crypto trader on social media platform X – in his latest prediction – has made a significant bearish call for the price of Bitcoin. Below is the potential path to a sharp BTC price correction over the coming weeks.
Is a 20% Correction Expected for Bitcoin Price?
Crypto analyst Ali Martinez took advantage of the X platform to share an interesting analysis of the price of Bitcoin. According to the crypto expert, the flagship cryptocurrency is likely to see a significant pullback to the price level of around $78,000.
This bearish projection is based on the formation of the head and shoulders pattern on the 4-hour price chart. The head and shoulders formation is a technical analysis pattern characterized by three distinct high prices, including a higher “head” positioned between two lower “shoulders.”
This chart pattern generally indicates a potential bearish reversal, signaling a transition from an uptrend in price to a downtrend. This trend reversal can be confirmed when the price breaks below the neck line, which is a trend line connecting the dips (swing lower) between the head.
The price of Bitcoin prints head-and-shoulders pattern on the 4-hour chart | Source: Ali_charts/X
As seen in the chart above, Bitcoin price recently tested the neckline around the $92,000 region before rebounding above $98,000. However, it appears that Bitcoin price is returning to the neckline, at $92,000.
Martinez noted that if BTC price comes back, successfully breaks through and closes below the neckline, the flagship cryptocurrency could see a correction up to $78,000. This represents a drop of almost 20% from the current price.
On the other hand, according to the crypto analyst, a strong close above the $100,000 mark would invalidate the current bearish setup. A return to a six-figure valuation could see the market leader resume its upward trajectory and potentially reach new highs.
Bitcoin Price at a Glance
At the time of writing, the BTC price sits just below 98,000, reflecting a decline of just 0.8% over the past 24 hours. According to data from CoinGecko, the leading cryptocurrency is up almost 4% in the weekly period.
The price of BTC at $98,272 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
