Bitcoin Price Analysis: Technical Pattern Signals Major Correction
Leading crypto analyst Tony Severino has issued a stark warning for Bitcoin holders, identifying a potentially bearish Head and Shoulders pattern that could trigger a significant price correction. The analysis suggests BTC may experience a pullback to the mid-$80,000 range, marking a critical test for the leading cryptocurrency.
This analysis comes amid heightened market volatility and connects with recent warnings about Bitcoin’s $80K support level being at risk.
Technical Indicators Point to Bearish Setup
The Lower Time Frame (LTF) chart analysis reveals a classic Head and Shoulders pattern formation, widely recognized as a bearish reversal signal. Key technical points include:
- Target zone: $83,600-$84,800
- Symmetrical triangle formation with A-B-C-D-E wave structure
- Critical support level at mid-$80,000s
Market Implications and Expert Perspectives
While Severino’s analysis points to a bearish scenario, market expert ‘Crypto Caesar’ offers a contrasting view, suggesting this could be the final bear trap before a major bull run continuation. The competing narratives highlight several possible scenarios:
- Short-term correction to $83,600
- Potential bounce to $90,000
- Final surge above $110,000
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Trading Considerations and Risk Management
Traders should consider implementing strict risk management strategies given the conflicting signals. Key levels to watch include:
- Primary support: $83,600
- Secondary support: $80,200
- Resistance level: $90,000
Source: NewsBTC