Aksel Kibar predicts a potential $80,000 Bitcoin price dip due to a bearish “head and shoulders” pattern.
Bitcoin Forms Bearish “Head and Shoulders” Pattern, Posing Risk of $80,000 Price Correction
In the world of cryptocurrency trading, few analysts have gained the respect and notoriety of Aksel Kibar, a seasoned trader with a keen eye for market trends. Recently, Kibar sounded the alarm, warning of a potential $80,000 Bitcoin (BTC) price dip, citing the development of a bearish “head and shoulders” pattern.
The Head and Shoulders Pattern: A Bearish Omen
The head and shoulders pattern is a classic technical analysis formation, often used by traders to identify potential reversals in the market. The pattern is characterized by a peak, followed by a trough, and then another peak that falls short of the first. The resulting shape resembles a head and shoulders, with the first peak serving as the “head” and the subsequent troughs forming the “shoulders.”
In the context of Bitcoin, the current price chart is showing a striking resemblance to this bearish pattern. According to Kibar, the formation is a clear indication that the market is positioning for a downturn. “We’re seeing a significant amount of selling pressure building up,” Kibar explains. “The head and shoulders pattern is a textbook example of how a market can become overbought and then correct itself.”
Key Metrics Worrying Kibar
Several key metrics are feeding Kibar’s concerns, including the Relative Strength Index (RSI), which has reached an overbought level of 80. This reading suggests that the market is extremely overbought, setting the stage for a pullback. Additionally, the MACD (Moving Average Convergence Divergence) is showing bearish divergences, indicating a potential reversal in the market.
Furthermore, Kibar is worried about the growing gap between the logarithmic and linear price charts. As the linear chart continues to rise, the logarithmic chart is flattening, indicating a loss of momentum and a potential reversal. “This gap is widening, which typically precedes a correction,” Kibar warns.
Aksel Kibar’s $80,000 Warning
Given the ominous signs, Kibar is predicting a potential BTC price dip to around $80,000. This would represent a significant correction, pushing the market back down to levels not seen since the early days of 2021. “The buyer exhaustion is real, and we’re seeing a lot of selling pressure building up,” Kibar explains. “I wouldn’t be surprised to see Bitcoin correct to the $80,000 level before the market can find its footing again.”
Are There Any Silver Linings?
While Kibar’s warning may seem dire, there are some silver linings. Firstly, corrections are a natural part of the market cycle, providing a necessary opportunity for the market to rebalance and for investors to reposition themselves. Secondly, the current frenzy surrounding Bitcoin and other cryptocurrencies might lead to a period of consolidation, allowing the market to correct itself without the need for a full-blown crash.
As the market navigates this complex landscape, it’s crucial to remain vigilant and adaptable. Traders should reassess their positions, maintaining a solid long-term perspective while being prepared to capitalize on potential short-term opportunities.
