The cryptocurrency landscape is witnessing significant shifts as Bitcoin grapples with potential market corrections. According to Piotr Matys, a Senior Foreign Exchange Analyst at Intouch Capital Markets, Bitcoin seems to be tracing a typical head and shoulders pattern, which may signal a transition from a bullish trend to a bearish phase. Matys highlights that a drop below the pivotal support level of $91,600 could activate a pronounced technical bearish signal for Bitcoin.

Furthermore, analyst Kuptsikevich suggests that if negative sentiment persists, Bitcoin might face a downturn, potentially testing the $88,000 threshold. A brief recovery could follow, possibly seeing Bitcoin rebound near $74,000. Last year’s optimism, fueled by the launch of a U.S. exchange-traded fund (ETF) linked to Bitcoin and the support from U.S. President-elect Trump, led to unprecedented heights for the cryptocurrency. However, as we enter 2025, much of this enthusiasm has diminished, with traders eagerly anticipating more clarity following Trump’s inauguration on January 20th.