Market analyst Tony Severino has expressed concerns about the current price action of Bitcoin on the weekly chart. With the flagship cryptocurrency trading below $110,000, there are predictions that it could potentially drop below the psychological $100,000 level.
In a recent post on X, Severino highlighted that Bitcoin’s price is forming an Evening Star pattern on the weekly chart, a pattern that he is closely monitoring. This pattern is emerging right at the Bollinger Band basis line, around $111,600, amidst the tightest BB squeeze in BTC’s history.
Severino previously mentioned that Bitcoin’s weekly Bollinger Bands are currently the tightest they have ever been in the history of BTCUSD price action. This indicates low volatility as BTC is trading within a narrow range. The upper BB is around $122,000, the basis BB is at $111,600, and the lower BB is at $101,000, as shown in his accompanying chart.
The Evening Star pattern suggests that bears are gaining control over the market, potentially leading to a further downtrend in the Bitcoin price. With the Bollinger bands tightening, Severino is cautious about the possibility of BTC declining to the lower BB basis. Crypto analyst Bob Loukas also confirmed that bears are in control and hinted at a potential drop below $100,000.
While Bitcoin is looking to print its Weekly Cycle Low, Loukas believes that BTC is holding up well despite the current downtrend. He suggested that a rally to $118,000 would signify the start of a new cycle. However, until then, bears are expected to maintain control, with the possibility of Bitcoin dropping below $100,000. In the long term, Loukas still anticipates a rally to as high as $140,000.
Another analyst, Ali Martinez, cautioned that Bitcoin needs to reclaim $116,300 to avoid dropping as low as $94,334 based on the Pricing Bands. Martinez emphasized that $107,200 is a crucial support level for Bitcoin, and a break below it could open the door to $100,000 or even $93,000.
At the same time, Titan of Crypto observed that Bitcoin has broken below the trendline at $110,000. While confirmation is still needed, the analyst believes that the market is currently in a period of fear and that this does not necessarily signal the cycle top.
As of the latest data from CoinMarketCap, Bitcoin is trading around $109,600, showing an increase in the last 24 hours. The cryptocurrency market continues to experience fluctuations, with analysts closely monitoring key levels and patterns to predict future price movements.
(Source: Chart from Tony Severino on X)
Featured image from Pixabay, chart from Tradingview.com.