Bitcoin could face a steep correction to $80,000, according to Chartered Market Technician Aksel Kibar. In an X post on Dec. 26, Kibar flagged a potential head-and-shoulders (H&S) pattern on Bitcoin’s daily chart, a classic signal of an uptrend reversal. “The pullback can take place with a possible short-term H&S top if the right shoulder becomes better defined,” Kibar wrote, adding that this could lead to a price target of $80,000.
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Broadening Pattern Signals Deeper Correction
Kibar’s analysis hinges on a breakout from a broadening chart pattern completed at $73,700. If the head-and-shoulders pattern fully forms, Bitcoin’s decline would mark a correction within the ongoing bull market. While many traders dismissed such a sharp dip, Kibar argued this skepticism reinforces his outlook.
Whales and Stablecoins Hint at Bullish Turn
At the same time, data from research firm Santiment suggests that Bitcoin whales might be preparing for a market shift. The firm observed large stablecoin deposits to exchanges, which it described as an “encouraging sign” for Bitcoin’s prospects heading into 2024. While not a guarantee of immediate buying, this activity reflects underlying confidence in the market’s potential recovery.
At the time of writing, Bitcoin is sitting at $96,800.72.
