- Despite the expected short-term correction, Arthur Hayes remains bullish on Bitcoin’s long-term prospects, forecasting a potential surge to $250,000 by year-end.
- BTC’s price recently dropped below the $100,000 mark and is facing mounting bearish pressure, with long liquidations surpassing $250 million.
Arthur Hayes, co-founder and CIO at BitMEX appeared on the social networking platform X, announcing an about-face into his essay trilogy. Today, in a post on X, Hayes shared an update stating, “Reversing the order of my tryptic essay series. The Ugly will be published tomorrow morning.” In the post, he also hinted at a huge crash in Bitcoin (BTC) price.
Will Bitcoin Price Plunge To $75,000?
In this upcoming essay, Arthur Hayes predicts a deep correction in the price of Bitcoin between $70,000 and $75,000. He also hinted at a broader financial shake-up when he described the scenario as a “mini financial crisis.” Still, he remains optimistic about Bitcoin’s potential, projecting a sharp recovery that could take the BTC price to $250,000 by the end of the year.
At the time of writing, Bitcoin price dropped below $100,000 as DeepSeek AI startup penetration sent tremors across the crypto market, as reported in our previous news article. According to technical aspects, BTC may have formed a bearish double-top pattern, which might become a factor for additional downside.
For further context, a double-top pattern emerges when an asset registers two peaks at roughly the same price level, with a trough in between. This pattern often indicates that bullish momentum is fading. If the price fails to break above the previous peak and subsequently falls, it strengthens the likelihood of a bearish reversal.
The neckline, for instance, marks the key level of support around $91,300. A daily close below the level may confirm a double-top pattern where the trend transitions from bullish to bearish. By applying the technique of measured moves, which considers the decline by estimating the distance of the peaks down to the neckline, analysts still estimate a price drop of almost $75,000.
Arthur Hayes Remains Positive Despite Weak Derivatives Market
Arthur Hayes’s predictions are in line with these technical indicators. However, his long-term view is sharply divergent from the near-term bearish outlook. His statement indicated that the expected dip and financial turbulence might be precursors to renewed monetary easing, a development he believes would serve as a catalyst for BTC’s rise to $250,000.
Hence, the crypto market will closely watch Bitcoin price action in the coming days, especially around the neckline support at $91,300. A break below this level could validate the double top pattern and potentially set off the significant correction Arthur Hayes mentioned in his forecast.
Nonetheless, as Hayes implies, such developments might set the stage for a significant recovery later in the year. As of now, reclaiming the $100,000 level remains important for Bitcoin price’s future trajectory as it’ll increase the chances of a rebound to $150K, as we covered in our latest report.
On the contrary, currently, the situation seems wary, with BTC’s long liquidations soaring. According to Coinglass statistics, Bitcoin long liquidations topped $252.19 million today, signally major sell pressure. However, Bitcoin’s open interest remained stable at $66.27 billion, gaining 0.44% today, igniting hopes of a rebound as traders remain optimistic about BTC’s future.
