After closing last week below the critical support level of around $95k, Bitcoin's price is treading on shaky ground, which could lead to further sell-offs in the near term.
Creeping Fear of Crypto Selloff
The cryptocurrency community is experiencing a potential threat of a 'sell-the-news' scenario amidst the re-election of US President Donald Trump and the upcoming inauguration. Bitcoin's fear and greed index indicates rising greed among some traders as whales slow down. Crypto trading volume has sunk to levels seen only before the November 5, 2024, US elections.
Midterm Targets
From a technical analysis perspective, Bitcoin price is forming a potential head and shoulders (H&S) pattern on the daily time frame. The daily Relative Strength Index (RSI) shows a bearish divergence, indicating a potential correction below $90k soon.
Forecasts by Renowned Trader Peter Brandt
According to notable trader Peter Brandt, Bitcoin price might be forming either an H&S pattern, a bear-trap pattern, or evolving into a longer pattern. Brandt cautioned that Bitcoin has formed a classic H&S pattern with a target range between $77.5k and $75k. However, if BTC price consistently closes above $108k, a new trend might be confirmed in the near term.
The state of the Bitcoin market remains uncertain, with multiple factors potentially impacting future price movements. Technical indicators also suggest possible further decline if significant positive changes in market dynamics do not occur.
