Amid a turbulent market characterized by ongoing bearish sentiment, Bitcoin’s price remains precariously positioned around the $110,000 support level, facing increasing selling pressure. This has led to alarming forecasts suggesting that a further crash in Bitcoin’s value is imminent. Notably, crypto analyst Toby Dawson has highlighted the emergence of a bearish Heads and Shoulders pattern, which could signal a drop below the critical $100,000 threshold.
In his analysis shared on TradingView, Dawson meticulously details the development of this pattern. The left shoulder materialized around $117,000 during a difficult period in September, setting a challenging stage for Bitcoin. Following a subsequent rebound, the asset surged to an all-time high above $126,000 but encountered significant resistance, culminating in the formation of the “head” in the pattern. As expected, this resistance contributed to Bitcoin’s downward trajectory.
Most recently, the right shoulder was formed during a rally back toward the $117,000 mark at the end of October but again met strong resistance, marking the completion of the bearish pattern. While Dawson suggests that a significant bounce in Bitcoin’s price could be possible, he warns that a breakdown from this pattern could lead to a swift decline, with prices potentially plummeting below $100,000 and even approaching the $90,000 level.
The concerns regarding a price crash are echoed by another crypto analyst, who notes that historically, Bitcoin has faced steep declines following new all-time highs, like the recent peak above $126,000. This analyst points to the crucial 1-week 50 EMA and the $100,000 support level as the last lines of defense for the cryptocurrency. Failure to maintain support at these levels could trigger a dramatic free-fall in price. The analyst cautions investors that they should be prepared for a significant downturn, ominously stating that “Bitcoin is heading straight to hell!”
In agreement with Dawson, this analyst anticipates that not only will Bitcoin fall below the $100,000 mark, but it may also plunge further into the $80,000 range before finding any substantial support. As market participants brace for potential turbulence, the sentiment among crypto watchers grows increasingly cautious, urging investors to remain vigilant in this volatile landscape.
