Analysts Forecast Bitcoin Price May Fall to $41,000 Based on Technical Analysis

As cryptocurrency analysts evaluate current market conditions, indications suggest that Bitcoin's price may drop to $41,000. This prediction is based on recent technical analysis released this week.

Key Takeaways

Analysts identify a potential decline in Bitcoin's price to $41,000 due to a harmonic pattern.
Tony Severino suggests a "Shark" pattern forming on Bitcoin's weekly chart, indicating critical target levels.
Ted Pillows highlights both bullish and bearish scenarios for Bitcoin's near-term price action based on resistance and support levels.
The next key move for Bitcoin will depend on its ability to break through current resistance.

Analysts predict Bitcoin price could drop to $41K based on technical patterns

Market Analysis Indicates Possible Bitcoin Price Drop

According to crypto analyst Tony Severino, Bitcoin is currently forming a unique harmonic structure known as a "Shark" pattern on the weekly chart. This pattern includes an ABCD structure, with the primary target identified at point “D,” which corresponds to the $41,000 price level on his analysis chart.

Severino has noted the importance of Fibonacci ratios in the formation of these harmonic patterns. He emphasizes that although the current pattern suggests a potential price decline, Shark patterns are generally viewed as signals for bullish reversals once the final leg of the pattern is completed.

In a separate analysis, fellow crypto analyst Ted Pillows shared his insights on both negative and positive scenarios for Bitcoin based on its near-term price movements. Pillows' analysis highlighted crucial levels that Bitcoin must reclaim to avoid a deeper price correction.

The analysis reveals that two possibilities exist for Bitcoin's future. If Bitcoin successfully reclaims and sustains its position above a specified resistance zone, momentum could drive the price toward higher targets. In contrast, if Bitcoin struggles at this resistance range, a retreat towards nearby support levels is predicted. A failure to hold these support levels could lead the market into further negative territory.

Although Bitcoin has shown some recovery following a prior decline, it is nearing the resistance range that Pillows describes as critical for determining the direction of its next significant move.