Amid the bearish pressure that has rocked the market, Bitcoin price continues to hover around the $110,000 support, especially as selling pressure increases. This has led to predictions that Bitcoin price is headed for another crash amid the weakness. One analysis that stands out comes from crypto analyst Toby Dawson, who pointed to the formation of a bearish Heads and Shoulders pattern that could trigger a cascade below $100,000.
Head and shoulders pattern points downward
In the analysis shared on the TradingView website, Dawson says contours the formation of the head and shoulders pattern. The first shoulder here, the left shoulder, was created around $117,000 when the price struggled in the month of September. The subsequent recovery would then give rise to the formation of the head.
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Next was the Bitcoin price’s meteoric rise to a new all-time high above $126,000 before resistance emerged. This resistance at this level led to the formation of the head of the pattern, and as expected, the price continued its downward trend after this.
The most recent of these is the formation of the right shoulder, which was created during the rally towards $117,000 in late October. Once again, Bitcoin price hit another major resistance, marking the completion of the head and shoulders pattern.
With this formation, the crypto analyst points out the possibility that the The Bitcoin price will see a big rebound. However, in the event of a disruption, the price is expected to fall below $100,000 and head towards $90,000.
Expectations for a Bitcoin price crash are spreading
Another crypto analyst has done the same called the possibility of the Bitcoin price crashing. This comes after the cryptocurrency hit a new all-time high above $126,000, with the analyst pointing out that the digital asset has always seen a major price crash after reaching new highs.
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From here, the focus is now on the 1-week 50 EMA and the $100,000 support. These two serve as the last line of defense, and if they fail, the analyst expects the Bitcoin price to enter a free fall. As a result, the analyst warns that investors should get ready to exist as “Bitcoin is going straight to hell!”
Like Dawson, the crypto analyst expects Bitcoin to break below $100,000, but he goes even further. This time, it is not expected to actually stop above $90,000, but rather reach deeper into the $80,000 area before finding support.
Featured image of Dall.E, chart from TradingView.com