Bitcoin Faces Further Correction Before Reaching New Highs, Experts Warn

In the early hours of December 30, Bitcoin neared the lower boundary of its recent trading range ($92,500-$99,500) over the past ten days. Experts suggest the correction may continue before recovering to record levels, reports Cointelegraph.

At the time of writing, Bitcoin is trading at $93,650, showing a 1.5% decline over the past 24 hours.

The publication noted that the price has broken below the 20 DMA and is heading towards the 50 DMA, which is approaching $80,000.

The RSI has not reached oversold levels, leaving room for bears.

The cryptocurrency fear and greed index has fallen to 65 points. Such values were last observed on October 15, 2024. 

Analyst Aksel Kibar has set a target of $80,000, anticipating the completion of a “head and shoulders” pattern.

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. $BTCUSD https://t.co/aWeNdWVkMz pic.twitter.com/QbGi08AfcH

— Aksel Kibar, CMT (@TechCharts) December 26, 2024

10x Research highlighted their expectations of volatility and disagreed with the common view of Bitcoin’s continued parabolic growth ahead of Donald Trump’s inauguration.

Technical analyst and Factor LLC head Peter Brandt suggested that the price of the leading cryptocurrency is following the “Hump Slump Bump Dump Pump” model, with the last component yet to be fulfilled.

If you are a Bitcoiner, take a look at this post from several years ago.
It describes the famous Hump Slump Bump Dump Pump chart construction in $BTC
Same thing could be happening nowhttps://t.co/GUVydv7F9b pic.twitter.com/dW3uAar3OQ

— Peter Brandt (@PeterLBrandt) December 29, 2024

The formation suggests a price movement with an initial rise (hump), followed by a decline (slump), recovery (bump), fall (dump), and a final rebound (pump).

CryptoQuant founder and CEO Ki Young Ju agreed with Brandt.

#Bitcoin is in the “Hump Slump Bump Dump Pump” pattern. https://t.co/kTuWnYPVX6

— Ki Young Ju (@ki_young_ju) December 29, 2024

QCP Capital previously noted the absence of a Christmas rally for the leading cryptocurrency.

K33 Research pointed to a high probability of the bull run peaking on January 17.