Bitcoin Risks Deep Pullback To $96,000, But Not All Analysts Are Bearish

Bitcoin (BTC) is beginning to flash warning signs that could disrupt its recent bullish momentum. According to some analysts, BTC risks breaking below the key $100,000 price level, potentially tumbling as low as $96,000.

Bitcoin Showing Warning Signs

In an X post published today, noted crypto analyst Titan of Crypto shared the following BTC daily chart. The analyst suggested that a Head and Shoulders pattern may be forming, with a possible downside target around $96,000.

BTC is currently trading near the neckline of this pattern. A breakdown below this level could send the digital asset toward its next significant support zone near $96,000.

For the uninitiated, the Head and Shoulders pattern is a bearish chart formation with three peaks – a higher middle peak (the head) between two lower ones (the shoulders). A break below the neckline support often signals a potential trend reversal and further downside.

Fellow crypto trader TraderXO echoed Titan’s view. In a separate X post, he noted that BTC was recently rejected at the 7-day Composite Volume Profile (COMP) Value Area High (VAH). He stated:

Acceptance below Value Area Low (VAL) = makes me believe we clean up the poor lows down at 103 and if that fails to stick then into the SP’s I marked out in previous tweets. 104’s continue being defended but some heavy sell flows persist.

TraderXO added that the BTC market is still largely in the hands of sellers, which may trigger the unwinding of more long positions. Until selling pressure eases, there remains a risk of BTC falling to around $97,200.

Analysts Say No Need To Panic

While the aforementioned setups urge caution, other analysts maintain that the broader market structure remains strong. For example, crypto analyst Jelle shared the following chart, suggesting that BTC may be mirroring its previous bullish consolidation phase just below its former all-time high (ATH).

Meanwhile, analyst Master of Crypto pointed to the evolving nature of Bitcoin market cycles. In an X post, he observed that bull runs have been getting longer while bear phases are shortening.

He also noted that each new macro-level ATH has historically occurred in November or December. If that pattern holds, BTC could reach a new ATH in about six to seven months.

Macroeconomic trends also appear to favor BTC. In an X post, market commentator Ted Pillows pointed out the ongoing breakdown in the US Dollar Index (DXY), which is typically bullish for Bitcoin and other risk-on assets.

At the same time, on-chain data shows that Bitcoin whales are steadily increasing their holdings – fuelling optimism that a supply squeeze could drive prices sharply higher. At the time of writing, BTC is trading at $104,530, down 0.7% in the past 24 hours.