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The beginning of the new year 2025 cannot be described as prosperous for the cryptocurrency market. Firstly price Bitcoin (BTC) We were disturbed by the breakout to a new all-time high, which eventually ended lower than the December peak, forming what many consider to be a head and shoulders pattern.
One of the most common technical analysis formations, the head and shoulders pattern, presents itself as three waves of growth, with the head being the middle and largest wave.
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However, it is the shoulders that fail to reach the middle top, indicating current weakness for buyers. The pattern is ominous because after the formation of the second shoulder, the price of the asset is at risk of breaking below the neckline and falling as much as the head is worth.
Three Scenarios for Bitcoin (BTC) by Peter Brandt
According to the latest Bitcoin forecast issued by Peter Brandta popular trader with 50 years of experience, the leading cryptocurrency is currently charting a classic head and shoulders pattern. If validated, BTC price could see three outcomes from the current situation. The first, according to the trader, is to complete the formation and trend to target around $76,000, which is more than 18% below the current price.
The second scenario, according to the more optimistic Brandt, is that Bitcoin price A "bear trap", a form of market manipulation, forms when the price goes down, but only to induce everyone to turn bearish and then short squeeze higher. Brandt has previously highlighted this option as the most likely.
The third scenario is that the head and shoulders pattern turns into a larger pattern, which does not necessarily mean that it will be more bullish or bearish.
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As for Brandt himself, patterns are not set in stone. As a trader will notice, sometimes they work, but they often change or fail.
It remains to be seen where the market will take the price BitcoinBut the fact that even experienced traders like Brandt struggle to provide a concrete outlook on the current state of the market speaks for itself.
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