Amid the bearish pressure that has rocked the market, Bitcoin price continues to fluctuate around the $110,000 support, especially as selling pressure increases. This has led to predictions that Bitcoin price is headed for another drop amid weakness. One analysis that stands out comes from crypto analyst Toby Dawson, who pointed to the formation of a bearish head and shoulders pattern that could trigger a waterfall below $100,000.
Head and Shoulders Pattern Points Down
In the analysis shared on the TradingView website, Dawson contours the formation of the head and shoulders pattern. The first shoulder here, the left shoulder, was created at around $117,000, when the price was struggling in the month of September. The subsequent recovery would then lead to the formation of the head.
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Next was the rapid rise of Bitcoin price to a new all-time high above $126,000 before encountering resistance. This resistance at this level led to the formation of the pattern head and as expected, the price continued its downtrend below.
The most recent of them is the formation of the right shoulder, which It was created in the rally towards $117,000 at the end of October. Once again, Bitcoin price touched another major resistance, marking the completion of the head and shoulders pattern.
With this training, the cryptanalyst points out the possibility that the Bitcoin price will see a major rebound. However, in the event of a crash, the expectation would be for the price to fall below $100,000 and advance towards $90,000.
Bitcoin price drop expectations extend
Another crypto analyst has also called the possibility of the price of Bitcoin crashing. This comes after the cryptocurrency hit a new all-time high above $126,000, with the analyst noting that the digital asset has always seen a significant price drop after reaching new peaks.
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From here, the focus is now on the 50 1-week EMA and support at $100,000. These two are serving as last line of defense, and if they fail, then the analyst expects the price of Bitcoin to go into free fall. As a result, the analyst warns that investors should prepare to exist as “Bitcoin is heading straight to hell!”
Like Dawson, the crypto analyst expects Bitcoin to fall below $100,000, but he takes it even further. This time, it is not expected to stop above $90,000, but rather head deeper into the $80,000 territory before finding support.
Featured image of Dall.E, chart from TradingView.com
