Bitcoin traders target $30K–$34K price zone due to bearish BTC chart patterns

The total crypto market capitalization dropped on Jan. 23 with the global market value falling from $1.6 trillion to $1.5 trillion, representing a 5.5% day-on-day decline.

While trading volumes rose by 55%, it is largely due to the sell-off in the market.

Total crypto market capitalization. Source: TradingView

Bitcoin (BTC) price fell below $40,000 to trade at $38,521 on Jan. 23.

Most altcoins are following BTC’s price action with Ether (ETH) falling below the $2,200 mark and Solana (SOL) briefly losing the $80 support level. Binance Coin (BNB) also lost the $300 level which had been a key support level for the layer 1 token.

Related: Bitcoin rides new $600M GBTC offload, with BTC price eyeing 2-month low

Analysts turn bearish on BTC

Bitcoin’s recent price action has led many investors to question whether the rally to $49,000 was the top for the bull market.

According to veteran trader Bob Loukas, Bitcoin’s weekly cycle chart suggests that the price has topped.

Meanwhile, another popular trader, Peter Brandt, spotted BTC trading below the $40,000 mark, saying that the price had “completed a right-angled broadening triangle negated above 42,400 $BTC,” confirming a bearish breakout.

According to the chart Brandt shared in a Jan. 22 post on X, the price target for bears is around the $34,700 zone.

Bitfinex’s short-term target is much higher, between the $38,000 – $36,000 zone in the short term and in the long term before halving, the $32,000 mark.

Despite the ongoing correction, other analysts remained optimistic about BTC’s upside. Jurrien Timmer, director of Global Macro at Fidelity Investments, is not worried about Bitcoin’s crash. He posted the following chart on X, saying,

“In my view, the price of Bitcoin is driven by the size and growth of its network, which in turn is driven by its scarcity features (stock-to-flow) and real rates (Fed policy). As the chart shows, Bitcoin’s network is growing in line with a standard power regression curve. That means that the S-curve nature of Bitcoin’s network remains on track.”

Bitcoin’s adoption curve. Source: Bloomberg

Adding to this positive outlook, independent analyst Ali says, “This might be a temporary setback before the continuation of the uptrend” after observing the repetition of a historical sentiment cycle where BTC experiences “a brief phase of anxiety, marked by a price correction.”

​​According to Ali, the ongoing correction could be due to the anxiety in the market, suggesting that a recovery may begin in the short term.