Since the turn of the year, several predictions have emerged regarding the price of Bitcoin in 2025. 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.
Prominent cryptocurrency trader on social media platform X has – in his latest forecast – made a significant bearish call on the price of Bitcoin. Below is the potential path for a keen BTC price correction over the next few weeks.
Does a 20% correction on the cards mean the price of Bitcoin?
Cryptocurrency analyst Ali Martinez took on the X platform participation fascinating analysis of the Bitcoin price. According to a cryptocurrency expert, the flagship cryptocurrency is at risk of a significant decline to price levels 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 pattern is a technical analysis pattern characterized by three distinct price tops, including a higher “head” sandwiched between two lower “shoulders”.
This chart pattern usually indicates a potential bear reversal, signaling a transition from an uptrend in prices to a downtrend. This trend reversal can be confirmed when the price breaks below the neck line, which is the trend line connecting the troughs (troughs) between the head.
The price of Bitcoin prints head-and-shoulders pattern on the 4-hour chart | Source: Ali_charts/X
As you can see in the chart above, Bitcoin price recently tested the line around the $92,000 region before bouncing back to over $98,000. However, Bitcoin price appears to be returning to the neck line at $92,000.
Martinez noted that if the BTC price recovers, successfully breaks through and closes below the neckline, the flagship cryptocurrency could see a correction of up to $78,000. This represents an almost 20% decrease compared to the current price level.
On the other hand, according to the crypto analyst, a mighty close above the $100,000 level would invalidate the current bear setup. A return to a six-figure valuation could put the market leader back on an upward trajectory and potentially reach modern highs.
Bitcoin price at a glance
At the time of writing, BTC is trading at just under 98,000, reflecting just a 0.8% decline over the last 24 hours. According to CoinGecko data, the most crucial cryptocurrency increased by almost 4% on a weekly basis.
The price of BTC at $98,272 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView