Key Insights:
Berachain sees a breakdown both fundamentally and in its technical charts in the short term.
A Head and Shoulders pattern has formed on Berachain's 4H charts.
If BERA declines further, it could see a 21% crash by the second week of April.
Berachain sees a potential for a major crash of 21% as its 4H charts see the formation of a Head and Shoulders Pattern. The pattern started forming around 21 March 2025 and is expected to complete around 5 April 2025. The pattern has encountered a resistance around $9, which could be the highest point BERA achieves in April.
On the downside, BERA could see levels of $6.5 in the best-case scenario and $5.3 in the worst-case scenario.
Berachain 4H Charts From Tradingview
Tradingview
Berachain has been one of the largest gainers in this Q1 (Jan - March) despite liquidity shortage in the markets. Due to its unique proof of liquidity consensus mechanisms, BERA was insulated from the current liquidity crisis and had a $3.5 billion liquidity reserve.
At present, BERA has a strong support at $6. If this support breaks, we could see another 10%-20% fall in its price.
Despite being relatively new, Berachain has a decent derivatives market. Users can hedge their portfolios with put or call options, depending on their preference.
Berachain Option Market Volumes
DeFi Llama
To avoid any loss due to bearish markets at the minimum cost, we would have bought put options when the price reached $6. A put option near $5.3 would be the best buy in the currently expected scenario. If the market slides below $5.3, it could cover your portfolio losses. If the price does not slide below $6, it would result in a very minimal loss.
Berachain is fundamentally strong because of two major things.
One, its high liquidity reserves can help it withstand any shocks from the Federal Reserve and could also help a few other platforms that it lends to.
Second, Berachain has a highly developed ecosystem and on 24 March 2025, it launched the last part to complete the ecosystem of token (BERA), governance token (BGT), stablecoin (HONEY) and a DEX.
This same business model was successful earlier with Binance's BFUSD and there is enough reason to believe it would see the same fate with Berachain, if not greater.
Berachain has been listed on CMC on 3 February and hence it would not be possible to use long-term charts. Therefore, we take 4H charts to understand its price behavior in the recent past and anticipate it for the near future (within April 2025).
Berachain 4H Charts From Tradingview
Tradingview
Taking a look at Berachain charts, we see that besides the head and shoulder pattern, BERA owners also suffer from a decline in its price momentum. RSI in BERA has been going down for the last three days and is at a low of 31 at press time.
Berachain uses a unique proof of liquidity consensus mechanism which mandates validators deposit liquidity and helps users take benefit of its ecosystem tokens to perform tasks on the Berachain.
Further, it could also loan the liquidity pool funds to institutional users like exchanges, AMMs, DEXs, DeFi protocols, and many others at a higher fee than ususal.
Further, Berachain was launched at a time when the entire crypto ecosystem witnessed a dire shortage of liquidity to the extent that many largecaps corrected more than 25%. Bitcoin saw a fall to $76k levels while Ethereum saw its price decline to $1800, Dogecoin ended all its bull market gains and Shiba Inu descended into bearish territory for the long-term.
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