Bitcoin (BTC) At a Critical Juncture as Bulls and Bears Vie to Dictate the Next Direction

After hitting a record high of over $100,000,ксперts are debating whether Bitcoin (BTC) will continue to rise or experience a downturn before attempting another all-time high.

Legendary trading expert Peter Brandt has suggested that Bitcoin may experience one final “dump” or an extended period of consolidation before its next significant move upward.

In an X post on January 12, Brandt used data to illustrate phases of Bitcoin's recent price history, which he labeled as “pump,” “hump,” and “dump.” 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, like Bitcoin's December plateau that culminated in the current consolidation around the $95,000 mark.

Lastly, a “dump” represents a downward correction due to possible profit-taking or fading momentum, with another potential dip to $73,018 if key support fails.

According to Brandt, markets typically don’t sour until retail traders grow fatigued, which often precedes 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,” Brandt said.

Another prominent cryptocurrency analyst, Ali Martinez, shared a similar outlook in an X post on January 11, projecting that Bitcoin could either 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. 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 appears to be at a critical juncture in determining its next price trajectory.

Some analysts, like Ali Martinez, anticipate the asset doubling in 2025, thanks to 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 continues to trade below the $100,000 mark, some analysts, like Alan Santana, express concerns that if it fails to close above this level, the asset could be headed for a steep drop, with some predicting a potential slide to as low as $40,000.

Overall, if Trump supports the crypto space, as highlighted during his campaign, then 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.

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%.