Strategist doubles down on $45,000 bitcoin price target after fresh bearish technical signal
From MACD to H&S, the negative technicals are piling up for bitcoin.
Michael Purves, CEO of Tallbacken Capital Advisors and who warned of massive downside for bitcoin in late November, is doubling down on that call after seeing another technical breakdown in the preeminent crypto asset.
November was the sixth time that a monthly moving average convergence/divergence indicator sell signal had been generated for bitcoin, Purves noted, which typically results in bitcoin falling 60% thereafter.
So far, that call has aged incredibly well, with bitcoin hitting its lowest level since the session following Trump’s 2024 election win on Tuesday.
The latest technical domino to fall for bitcoin, per Purves, is the completion of a bearish head-and-shoulders pattern: the early 2025 peak around $110,000 marking the left shoulder, the all-time high marking the head, $98,000 marking the right shoulder early this year, and a neckline being established around $76,000.
“What’s particularly interesting about the neckline in the head and shoulders pattern is that this $76k level is the same level as Strategy’s (MSTR) average cost of acquisition,” he concluded. “If Bitcoin were to go beneath this level, this could trigger a major forced deleveraging of Bitcoin.”
Note: in December, Strategy unveiled a US dollar reserve of $1.44 billion so that it could cover its interest and dividend payments, helping the firm avoid the precisely this prospect.
