Could Bitcoin see a correction below $40,000 before breaking out toward a six-figure valuation? Based on historical chart technical patterns, Bitcoin
BTC $58,698 is on track to $110,000, but some analysts are concerned about a potential correction below $40,000 before reaching six figures.
Bitcoin price charts target $110K by 2025
Bitcoin’s price is on track to $110,000 by 2025 based on a key technical formation, according to popular crypto analyst Titan of Crypto.
The analyst wrote in a Sept. 1 X post:
“Bitcoin $110,000 Is on the Way. The Cup & Handle pattern is still in play. A bit more patience—the last quarter of the year is going to be epic!”
The cup-and-handle is a popular bullish chart pattern that signals the extension of an uptrend, used to spot opportunities to gain long exposure to an asset.
Another technical indicator also hints at a breakout toward $100,000 during the first quarter of 2025, according to popular analyst Elja Boom.
The analyst wrote in an Aug. 31 X post:
“BTC giant inverse head and shoulder pattern. When this breaks out, #Bitcoin will shoot above $100K. My timeline is ATH in Q4 and $100K in Q1 2025.”
Concerns over a potential BTC price drop to $40K
Despite the optimistic six-figure predictions, Bitcoin could still see a significant correction first.
Before the 2025 breakout, Bitcoin could risk a correction below $40,000, according to Bitcoin analyst Magoo PhD, who shared the below chart in a Sept. 1 X post.
Yet, other analysts argue that the correction will not be as severe. For instance, popular crypto analyst Moustace is eying a market bottom around $57,000.
The analyst wrote in a Sept. 2 X post:
“I know everyone is waiting for $53,500, but I think the low for $BTC is in here/or very close (~$57k), if it continues to copy the covid 2020 fractal.”
Based on historical data, technical traders use fractal patterns to identify key support and resistance levels and potential trend reversals.
Bitcoin currently has significant support at $57,000. A possible move below would liquidate over $860 million worth of cumulative leveraged short positions, according to Coinglass data.
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