Bitcoin’s price could drop to $80,000 as part of a broader market correction, according to a warning from renowned chart analyst and chartered market technician, Aksel Kibar. In a series of posts on X (formerly Twitter) on December 26, Kibar highlighted a potential “head and shoulders” (H&S) pattern forming in Bitcoin’s daily price chart, which could signal an uptrend reversal.

Potential H&S Pattern Points to $80K Target

Bitcoin has struggled to regain its $100,000 support level over the past week, leaving analysts debating where the next local low might be. Current downside targets range from $90,000 to the mid-$60,000 range. Kibar, however, believes the correction may settle somewhere in the middle, with $80,000 being a key level to watch.

Kibar identified a potential H&S pattern developing on Bitcoin’s chart, which, if confirmed, could result in further price drops. He explained:
“Breakout from the broadening chart pattern that completed on $BTCUSD… the pullback can take place with a possible short-term H&S top. (IF) the right shoulder becomes better defined… Keep this possibility on your watchlist.”

He further elaborated that, should the pattern materialise, the pullback could lead Bitcoin to the $80,000 mark. “If the pattern acts as a H&S top, the price target is at 80K. This can be the pullback to the broadening pattern that completed with a breakout above 73.7K,” Kibar added.

While some in the crypto community expressed scepticism about such a steep correction, Kibar noted that the resistance to the idea only reinforced his analysis.

Bitcoin Bulls Face Challenges Amid Market Uncertainty

Despite hopes of a sustained bull run, Bitcoin bulls have struggled to maintain momentum. The 21-day simple moving average (SMA), currently around $99,425, has repeatedly rejected Bitcoin’s attempts to climb higher.

Adding to the market’s turbulence, erroneous TradingView data briefly showed Bitcoin’s market dominance at 0% during the Boxing Day sell-off, catching traders’ attention.

Whales Signal Potential Market Recovery

Amid the uncertainty, some signs of optimism have emerged. On December 27, analytics firm Santiment revealed a bullish trend involving cryptocurrency whales moving stablecoins to exchanges.
“After the post-Christmas market-wide dip, crypto markets are seeing an encouraging trend of whales moving stablecoins to exchanges,” Santiment shared on X.

While the movement of stablecoins does not guarantee immediate purchases of Bitcoin or other cryptocurrencies, Santiment described this activity as a positive sign. The firm added:
“Consider this a bullish sign as 2024 sees its final days.”

ETF Inflows Provide Additional Hope

In another encouraging development, US spot Bitcoin exchange-traded funds (ETFs) reported a net inflow after four consecutive days of outflows exceeding $1.5 billion. This could signal renewed interest in Bitcoin as the market looks ahead to 2024.

For now, Bitcoin remains in a critical zone, with $80,000 being a level to watch closely should the bearish H&S pattern play out. Whether bulls can regain momentum in the coming days remains uncertain.