The Bitcoin market is currently positioned at a critical juncture that could determine its next trend in the coming weeks. With Bitcoin trading around $27.4k, investors are closely observing the retest of the neck support line, resembling a head and shoulder formation on the higher time frame. Unfortunately, the release of CPI data failed to revitalize the bullish sentiment in the crypto market as anticipated.
Meme Coin Trend Continues
While the overall market sentiment remains uncertain, the meme coin industry continues to gain traction, amplifying concerns of a potential end to the crypto relief rally. However, the on-chain analytics platform Santiment has provided some respite, noting the likelihood of a market reversal and a rise in response to growing calls for a bearish outlook.
Analyst’s Prediction: Choppy Month Ahead with Potential 50% Dump
According to a prominent crypto analyst on Twitter, @GVRCALLS, if the Bitcoin market experiences consecutive red closes today and tomorrow, traders should brace themselves for a turbulent month ahead. The analyst predicts a potential decline of up to 50% from current prices across the crypto market.
Specifically for Bitcoin, the analyst expects the leading digital asset to reach lows between $24k and $25k if today’s daily candle ends in red. Nevertheless, the analyst, followed by more than 36k individuals, suggests the possibility of a reversal that could propel Bitcoin’s price toward $31k.
Head and Shoulder Formation Should Not Be Ignored
Notably, experienced trader Peter Brandt emphasizes the significance of a completed head and shoulder formation in the higher time frame. He warns that such a formation if confirmed, could trigger a substantial sell-off not only in Bitcoin but also in the entire altcoin market, which relies heavily on BTC’s performance.
Source: https://coinpedia.org/altcoin/prepare-for-choppy-market-50-dump-in-bitcoin-price-crypto-analyst-issues-dire-warning/