Bitcoin Price Analysis: Potential Crash to $78,000 Despite Bullish Signals

Analyst Melika Trader warns of a head-and-shoulders pattern suggesting Bitcoin may crash to $78,000 after a possible fake breakout around $88,000. In contrast, bullish sentiment persists with predictions of price rallies over $137,000 by other analysts and significant whale accumulation. Current trading sits at $93,000, with increasing optimism for BTC’s recovery.

Crypto analyst Melika Trader has identified a potential head-and-shoulders pattern forming in Bitcoin’s price trajectory, which typically signals a bearish trend. The pattern shows that the left shoulder and double head are already established while the right shoulder is in the process of forming. This setup heightens the risk of a significant price decline once completed.

Melika Trader anticipates that Bitcoin may experience a false breakout, exceeding resistance levels of $87,000 to $88,000, before a major downturn occurs. The predicted plunge could see Bitcoin’s value drop to approximately $78,000, signalling the first major support area.

In recent trading, Bitcoin surpassed $90,000, attributed to the weaker US dollar, raising optimism for a potential climb towards $100,000. However, analysts indicate a secondary peak might be achievable, with targets lifting as high as $98,000 before any severe correction.

On-chain analyst Ali Martinez noted that Bitcoin’s resistance zone resides between $95,600 and $98,290, created by substantial activity from 1.65 million addresses that purchased 1.09 million BTC there. The forthcoming price movement will hinge on whether these holders opt to retain or sell their assets once Bitcoin returns to this price range.

Moreover, a bullish sentiment prevails as crypto whales appear to be hoarding Bitcoin, further supporting its price stability. Martinez highlighted that over 17,000 BTC have been withdrawn from exchanges recently, indicating a potential accumulation trend among large investors.

Alternatively, analyst Titan of Crypto predicts an upward surge in Bitcoin’s valuation, potentially reaching $137,000, which would establish a new all-time high. He notes that Bitcoin’s recent breakout from a bull pennant, backed by two consecutive bullish daily candles, solidifies this bullish outlook.

Additionally, Egrag Crypto asserts that a daily close surpassing $93,000 would act as a significant bullish indicator, proposing that a movement above $100,000 is plausible. He adds that any fears regarding price retracements could dissipate if Bitcoin closes above $103,000.

As of now, Bitcoin is trading at approximately $93,000, reflecting a more than 5% increase in the last 24 hours, as reported by CoinMarketCap.