Bitcoin and Ethereum prices might be preparing for a price crash as technical analysts and indicators show a potential drop in the coming days before experiencing a major rally in the coming weeks.
Recently, the Bitcoin price dropped to about $93,400 today, just two days after it rose to over $102,000. This downward trend has affected the whole cryptocurrency market.
Ethereum (ETH), the second-largest cryptocurrency, also saw a decline. Its price dropped by about 5% last week and nearly 2% in the last 24 hours. While Ether was trading at over $3,700 on Monday, it has now fallen to $3,293, with little sign of recovery soon.
Bitcoin and Ether Prices Set for a Harsh Reversal
Analysts are seeing signs that Bitcoin and Ethereum might face a downturn. They have identified a head-and-shoulders (H&S) pattern, which suggests a shift from a rising trend to a falling one. This pattern could push Bitcoin prices to $80,000 and Ethereum to around $2,800.
Brett, a chart analyst with over 15,000 followers on X, points out that this H&S pattern is visible in both Bitcoin and Ethereum charts, even though it’s not perfectly formed. He predicts Ethereum could drop to between $2,600 and $2,800, with a quick fall to $2,600 possible.
For Bitcoin, analysts expect the price to fall to roughly $80,000. However, this bearish outlook is not certain. It depends on the pattern completion, meaning Bitcoin and Ethereum need to break below certain price levels with confirmation from high trading volume.
Historically, years after Bitcoin’s halving event, its price has been crucial, often marking the cycle’s peak. If Bitcoin and Ethereum decline to these levels, it could be a good buying opportunity for long-term investors who expect a later price rally.
Another analyst, Ali, who has over 110,000 followers, shares a similar view. He believes Ethereum could drop to $2,900 but might soon see a strong rally that could lead it to a new all-time high by 2024.
The Crypto Bearish Turn Could Be Short-Lived
Further analyses show that the impending bearish turn might be short-lived, as the crypto market is predicted to soar heavily in the coming weeks.
According to analyst Ali, a drop in the price of Ethereum (ETH) to $2,900 is a good opportunity for long-term investors to buy. This price level has historically provided strong support, and returning to this point might attract new buyers who want to invest in ETH’s next rally. Ali believes that Ethereum could reach $7,000 this cycle.
This optimistic view is shared by others as well. Analyst Alifer suggested that if ETH drops to $2,800 and then rises again, it might form a right shoulder pattern called Inverse Head and Shoulders. This could indicate a bullish reversal, suggesting a shift from losing momentum to gaining it and targeting a breakout towards $6,000.
A similar situation is seen with Bitcoin. User “@cryptochimpanz” shared a chart comparing Bitcoin’s current movement to a past chart of gold. The analyst believes the Bitcoin price movements reflect a specific phase in gold’s historical bull run.
The highlighted part of the gold chart shows a period of consolidation before a breakout to a new high, followed by a dip that retested an earlier breakout level before continuing upward. Likewise, the Bitcoin chart suggests it might break out and then dip again before the next increase.
If this comparison is correct, Bitcoin could be transitioning from a consolidation phase and continuing its long-term uptrend, possibly reaching as high as $150,000 this cycle.
