After Bitcoin ( BTC ) attained a record high of above $100,000, one of the dominating opinions in the market is the asset’s potential to make further gains. However, some players foresee a possible plunge before attempting another all-time high. In this line, legendary trading expert Peter Brandt has raised the possibility of Bitcoin experiencing one final “dump” or an extended period of consolidation before its next significant move upward. In an X post on January 12, the expert backed his analysis with data showcasing Bitcoin’s recent price history identifying phases he labeled as “pump,” “hump,” and “dump.” Bitcoin price analysis chart. Source: Peter Brandt Notably, a “pump” is a period of rapid upward momentum, like Bitcoin’s rise from $70,000 to above $100,000 in late 2024, driven by strong buying and bullish sentiment amid the general post-election optimism. A “hump” follows as the rally slows and encounters resistance, as seen in Bitcoin’s December plateau that has culminated in the current consolidation around the $95,000 spot. Lastly, a “dump” represents a downward correction due to a possible profit-taking or fading momentum, with Brandt suggesting another possible dip to $73,018 if key support fails. Brandt observed the price action, noting that markets often do not falter until retail traders grow fatigued, a common precursor to major price movements in cryptocurrency . “The big question in my mind is whether Bitcoin will get one more dump (or more lengthy congestive chop) before the pump. Remember, markets generally do not sour until retail traders get worn out,” he said. Bitcoin’s critical juncture Another prominent cryptocurrency analyst, Ali Martinez, shared a similar outlook. In an X post on January 11, Martinez projected that Bitcoin could surge to as high as $140,000 or face a pullback to $67,000. These projections are based on two key patterns observed on the 12-hour BTC chart: a bull pennant and a head-and-shoulders formation. Bitcoin price analysis chart. Source: TradingView The bull pennant, characterized by an initial price rally followed by consolidation with converging trendlines, signals a bullish continuation. On the other hand, the head-and-shoulders pattern, featuring a central peak (head) flanked by two lower highs (shoulders), points to a possible bearish reversal. As Bitcoin consolidates around the $95,000 mark, it can be argued that the cryptocurrency is at a critical juncture in determining its next price trajectory. What next for Bitcoin’s price Looking ahead, varied outlooks for Bitcoin persist. Some analysts anticipate the asset doubling in 2025, driven by optimism stemming from the election of Donald Trump , who plans to make the United States a cryptocurrency investment hub. For instance, banking giant Standard Chartered predicts Bitcoin will hit $200,000, mainly driven by institutional investors. Additionally, as reported by Finbold, analyst Gert van Lagen predicted that Bitcoin could reach an ambitious target of $300,000 by March 30, 2025, based on the Elliott Wave Theory, which identifies repetitive market cycles. Meanwhile, as Bitcoin hovers below the $100,000 mark, some analysts, such as Alan Santana, have expressed concerns that continued trading below this level might open the asset to a drop as steep as $40,000. Overall, suppose Trump supports the crypto space, as highlighted during his campaign, Bitcoin will likely see further surges, driven by the excitement surrounding a possible clear regulatory framework that could attract institutional investors. There is also a continued push to have mega-companies convert their cash reserves into Bitcoin to hedge against inflation. For example, with Microsoft (NASDAQ: MSFT ) shareholders rejecting this idea, attention has turned to social media giant Meta (NASDAQ: META ). Specifically, a shareholder has proposed that Facebook’s parent company convert part of its $72 billion cash reserve into Bitcoin. If approved, this move could position Meta as one of the leading traditional companies to hold Bitcoin, potentially catalyzing price growth. Bitcoin price analysis At the time of reporting, Bitcoin showed continued consolidation around the $94,000 mark, with a valuation of $94,900. Over the past 24 hours, the asset has made modest gains of almost 0.5%, while on a weekly timeframe, BTC is down about 1.5%. Bitcoin seven-day price chart. Source: Finbold In summary, Bitcoin appears to be at a critical juncture, with both bulls and bears vying to dictate the next direction for the asset amid the current consolidation around the $94,000 level. The post Legendary trader sets Bitcoin next high target after possible dump appeared first on Finbold .
