The global crypto market is facing heavy selling pressure, driven by rising geopolitical tensions and large ETF outflows, just as many expected a bullish October. Bitcoin in particular is down more than $5,000 from its recent high of $66,000. However, a key moment is approaching as a crypto analyst points to crucial support levels that could determine whether BTC will experience a major breakout or collapse.
Bitcoin price drops by $52,000
Prominent cryptography analyst Ali Martinez recently pointed out a possible bearish pattern in Bitcoin’s price movement, which could lead to a significant decline.
According to Martinez, Bitcoin could fall to $52,000 if the current price action continues to follow the pattern of a descending parallel channel. This pattern suggests that Bitcoin’s price is moving within two downward parallel lines. Whenever the price reaches the upper line, it faces resistance and tends to fall towards the lower line, which acts as support.
As long as the price remains within these ranges, the asset tends to follow a bearish trend. However, if Bitcoin manages to break out of the channel, it could mark a bullish reversal, pushing the price higher.
Bitcoin rally towards $130,000?
On the other hand, another crypto analyst Mags believes that Bitcoin could be on the verge of a significant price increase, which could push its value to an impressive $130,000.
According to Mags, the price of Bitcoin is forming the right shoulder, which could cause the price to rise quickly. This rally could send Bitcoin’s price towards $130,000 if the pattern is successfully completed.
If Bitcoin follows the trajectory suggested by the reverse H&S pattern, this could be a key moment for the cryptocurrency as Bitcoin has struggled to gain strong upside momentum lately.