Bitcoin Price Plummets to $41,000: A Shark Is Swimming Beneath

A recent technical analysis by a crypto analyst indicates a troubling outlook for Bitcoin, predicting a steep fall to $41,000. The analysis points to a rare harmonic “Shark” pattern that may lead to further downtrends. While this potential drop could heighten the existing market fear and uncertainty, it's worth noting that such patterns often have bullish implications.

Key Takeaways

A recent analysis predicts Bitcoin's price could drop to $41,000, indicating a potential downtrend.
The formation of a “Shark” harmonic pattern might result in more volatility in the market.
Technical analyst Ted Pillows also provides insights on Bitcoin's trading ranges, indicating critical resistance and support levels.
Bitcoin is currently facing significant market sentiment challenges despite recent recovery efforts.

Bitcoin Drops Under $100K

Analyzing the Shark Pattern: Bitcoin’s Warning Signal

On Wednesday, crypto analyst Tony Severino shared on X that Bitcoin is developing a unique bullish harmonic pattern on the weekly chart. Severino emphasizes that traders should focus on this distinctive pattern, likening it to a “Shark in the water,” rather than being overly concerned with Bitcoin whale activity.

In his shared chart, Severino mapped out the Shark pattern, highlighting an ABCD harmonic structure. He has identified the price target at “D,” which coincides with the $41,000 mark. According to his analysis, Bitcoin could experience more declines, potentially dropping to this level, which would mean a reduction of over 55% from its current price of more than $91,000.

Dogecoin price 1 Source: X

Severino pointed out that harmonic patterns, similar to the one seen in the Bitcoin chart, often depend on specific Fibonacci ratios. The evidence shown in the current setup is significant. While his initial outlook appears quite bearish, he notes that a harmonic Shark pattern is typically viewed as a bullish reversal indicator once the final segment is completed.

Bitcoin’s Future: Navigating Between Bullish and Bearish Trends

Another analyst, Ted Pillows, has provided a contrasting technical analysis regarding Bitcoin's price trajectory. His report presents both bearish and bullish scenarios based on Bitcoin’s movement in the coming days.

Pillows’ analysis focuses on the crucial levels Bitcoin needs to regain to avoid a steeper price correction. Currently, Bitcoin is trading just above $91,500, having dropped nearly 20% over the past month. Despite a recent price recovery, negative sentiment surrounding Bitcoin remains strong.

In his findings, Pillows noted that after breaking above the $89,000 mark, Bitcoin is now positioned to move higher, testing a significant resistance zone between $93,000 and $94,000. This area is critical and will determine Bitcoin's next movement.

Dogecoin price 2 Source: X

His chart presents two possible scenarios. If Bitcoin can reclaim and maintain its position above the resistance zone, it could gain momentum to push past $100,000. This surge could further elevate the cryptocurrency towards $106,000 and $108,000.

Conversely, if Bitcoin fails to break through the $93,000-$94,000 range, Pillows anticipates a retreat towards $88,000. If this level does not hold, he has identified a lower support zone between $80,000 and $82,000. A further decline below this support could see Bitcoin’s price plummeting to around $78,600.

Bitcoin price chart from Tradingview.com BTC price moves above $91,000 | Source: BTCUSD on Tradingview.com