Bitcoin (BTC) Price Could Crash to $78K After Forming Head and Shoulders Pattern

Crypto analyst Melika Trader has warned about a bearish pattern that could be forming for the Bitcoin price. Based on this, the analyst predicts that the largest crypto by market cap could crash to as low as $78,000.

Crypto analyst Melika Trader has warned about a bearish pattern that could be forming for the Bitcoin (BTC) price. According to the analyst, the cryptocurrency could crash to as low $78,000.

In a TradingView post, Melika Trader noted that the Bitcoin price is forming a complex head-and-shoulders pattern. The left shoulder and double head had already formed while the left shoulder is forming now, with BTC at risk of suffering a massive crash once this happens.

As part of the expected move, Melika Trader suggested that the Bitcoin price could show a possible fake breakout above the resistance between $87,000 and $88,000. Once that happens, the analyst predicts that a strong drop will follow, with BTC dropping to as low as $78,000, which is the first support area.

The crypto analyst said:

“We can see the triple head forming now, and if the price breaks the neckline, it will continue down to the first fib support.”

On the other hand, crypto analyst Ali Martinez revealed that on-chain data shows the next key area of resistance for the Bitcoin price is between $95,600 and $98,290. That range acts as a major supply wall, as 1.65 million addresses bought 1.09 million BTC around that area. Bitcoin’s next move will depend on whether these holders decide to keep or sell their coins as soon as it reclaims this range.

However, crypto whales are actively accumulating BTC, which is bullish for the token’s price. According to Martinez, over 17,000 BTC have been withdrawn from exchanges in the past week. As the crypto behemoths are known to prefer moving large amounts of BTC on-chain to maintain privacy, these constant withdrawals could indicate that whales are preparing for a massive move.

BTC tokens are being withdrawn from exchanges to crypto platforms’ cold wallets, which are used for long-term storage. This suggests that these coins are not being sold but rather moved into safer storage for later use.