Amid the steady price rebound in the Bitcoin (BTC) market, a prominent market analyst who goes by the username KillaXBT is predicting another significant correction ahead.
Bitcoin historical data shows repeated monthly price declines of 8%.
KillaXBT outlined cautious market insights in a December 12 According to a renowned analyst, the leading cryptocurrency has consistently recorded a price decline of 8% since 14 days out of the last five months. KillaXBT describes this observation as the 14th key, which now has significant short-term implications for Bitcoin. Since hitting bottom at $80,000 in late November, BTC has formed an upward channel, consistently hitting high lows and highs.
However, KillaXBT’s forecast calls for a break in this channel, potentially halting the initial uptrend. Analysts say that following recurring price patterns, Bitcoin investors should expect a price decline of at least 5% after December 14. This suggests a potential retest of the $85,000-$86,000 price range.
Given the broadly bullish market structure for the asset, this move may be nothing more than a short-term setback. However, the prolonged correction seen early in the fourth quarter has already set a precedent, and there remains room for further declines if momentum wanes.
Will BTC bottom below $50,000?
In another X post, KillaXBT shares an even more bearish outlook on the Bitcoin market. This time, the seasoned analyst predicts that the price of the cryptocurrency market leader will reach a low of $48,905 despite the recent price rise. KillaXBT’s bottom target represents the Bitcoin price at the time of approval of the BlackRock IBIT ETF along with 11 other Bitcoin spot ETFs in January 2024. This prediction appears to be based on the common ground that the current bullish run has been largely supported by institutional inflows.
In particular, the Bitcoin Spot ETF was the center of these institutional inflows, boasting total net assets of $119.18 billion. BlackRock IBIT holds more than half of this traction as the clear market leader with $71.03 billion in net assets and $62.68 billion in cumulative net inflows.
If Bitcoin returns to its pre-ETF approval price level, it is expected to fall approximately 46% from its current market price. This move likely marks a sharp reversal in institutional positioning and suggests that continued ETF outflows, rather than retail capitulation, could be the main catalyst for a new cryptocurrency winter.
At press time, Bitcoin continues to trade at $90,348, reflecting a 2.18% decline.
Featured image from Pexels, chart from Tradingview
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