Bitcoin Price Analysis

The Bitcoin price has been quite indecisive over the past week, fluctuating between the $117,000 and $120,000 consolidation zone. However, it recently dropped toward the $115,000 mark due to significant coin movements to centralized exchanges.

Interestingly, a prominent market expert has projected a bearish outlook for Bitcoin in the upcoming weeks, indicating that BTC may be starting a downward trend.

Potential for Extended Decline

In a July 25 post on social media platform X, Chartered Market Technician (CMT) Aksel Kibar suggested that Bitcoin could drop to around $109,000 soon. Kibar’s analysis is based on an inverse head-and-shoulder pattern observed in the weekly timeframe chart.

Typically, the inverse head-and-shoulders indicates a potential bullish breakout, validated by a price breach of the neckline — a trendline connecting the highs between the head. As illustrated, Bitcoin’s price has exceeded the neckline, reaching a new all-time high.

However, Kibar explained that this breakout may not follow the usual pattern; head-and-shoulder breakouts often experience pullbacks and retests before resuming upward momentum.

Data provided by the analyst shows that since May 2017, Bitcoin has undergone more pullbacks (type 2 continuation) after head-and-shoulder breakouts than it has rallied straight (type 1 continuation). This observation supports Kibar’s bearish projection, suggesting BTC may fall back to the neckline around $109,000, representing over a 5% decline.

Current Bitcoin Price

After a rough start to the day, Bitcoin is recovering from its recent dip to $115,000. As of now, this cryptocurrency is priced at approximately $117,323, showing a slight 0.6% decline over the past 24 hours.

Chart from TradingView