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A crypto analyst has predicted a 98% Bitcoin price crash after a substantial rally to $250,000. Interestingly, the analyst is confident that Bitcoin will eventually reach this ambitious goal of a quarter of a million dollars. However, they warn that once profits are made at this top, Bitcoin could drop significantly to new lows.
Bitcoin price expected to crash 98%
On October 30, crypto analyst Gert van Lagen said told are 106,700 followers on X (formerly Twitter) that the Bitcoin price could fall to $24,000 once it reaches $250,000. Lagen revealed that many investors are overly confident that Bitcoin could never experience a 98% crash again, especially with the introduction of Explore Bitcoin Exchange Traded Funds (ETFs).
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To counter this overconfidence, the crypto analyst claimed that ETF assets tend to lose significant value during periods of economic recession. Consequently, the analyst predicts that the Bitcoin price could first experience a “blowoff” of up to $250,000, which would mark a historic milestone. At this point, many investors would start taking profits, which would make a huge profit sales pressure because they liquidate ahead of possible price drops.
According to Lagen’s analysis, once the market sentiment for the Bitcoin price The shifts will likely cause institutional investors, who may have been the main drivers of the $250,000 rally, to sell their holdings. Lagen has described this massive sell-off as the “shake of the century,” when the Bitcoin price could fall dramatically to 98% of its high.
This suggests that after reaching $250,000, the The BTC price may crash to $2,000, trading below the current price of Ethereum, which is trading at $2,635 according to CoinMarketCap.
Lagen highlights the reasoning behind this unexpected bearish price crash revealed that by plotting the Bitcoin price on the “Syslog scale”, it clearly shows a rising wedge of the High-Time Frame (HTF), which points to a price target between $1,000 and $10,000. He too revealed in a much earlier post that if Bitcoin experiences its expected shakeout and price drop to $1,000, it will four halving of events before the cryptocurrency can return to the $200,000 price high.
BTC will break above $73,000 and move higher
At the time of writing, the Bitcoin price is trading at $72,433 after experiencing a rise of over 7.8% this week. Has layers declared that Bitcoin price action indicates a possible ‘triangle bearish continuation pattern’, which typically signals a potential downtrend in a cryptocurrency.
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The crypto analyst has set a new target of $71,200 for Bitcoin, suggesting that if the cryptocurrency continues the triangular bearish continuation pattern, it price could drop significantly. On the other hand, Lagen has predicted that if Bitcoin can break the $73,000 threshold, it would invalidate the triangular bearish continuation pattern. This could signal the end of the downtrend and possibly lead to a stronger upward momentum.
Featured image created with Dall.E, chart from Tradingview.com
