In recent weeks, analysts have predicted that the Bitcoin price may crash again after the first crash on October 10. This is due to the weakening market trends that have shown that Bitcoin is still favoring a downtrend at the moment. Crypto analyst Lixing_Also visit the TradingView website shares this view, with the appearance of a bearish trend pattern suggesting that the Bitcoin price will fall rather than rise.
Bitcoin price threatens to seriously crash below $90,000
So far, Bitcoin price has been able to maintain its position above the psychological level of $100,000, despite bears briefly pushing the price below this level. It traded within a narrow range of $101,000 to $105,000 during this period, but without significant momentum that could push the price higher. This tight range unfortunately plays into the bearish pattern that charts a path downward.
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According to the crypto analyst’s chart, the bearish pattern formed in early October, well before the historic 10/10 crash. This means that the bearish trend had started much earlier, and the resulting crash was only a reaction to the weakening of bullish positions across the board.
This was caused by massive sell-offs, especially among whales and holders who had been holding onto their BTC for a notable amount of time. In recent months, these long-term holders have sold more than 390,000 BTC. creating billions of dollars in selling pressure. Given all this, it is no surprise that the Bitcoin price fell as it did in early October.
However, according to the crypto analyst, this sell-off of the long-term holders is a distribution phase. As they sell their holdings to newer investors, the cost basis for each Bitcoin begins to rise, making it more likely that buyers will hold it longer.
Looking at the descending trendline from here, technical analysis suggests that Bitcoin price is still testing the upper limit of the trendline. As the analyst explains, this upper limit coincides with $106,500, which provided major resistance for the cryptocurrency.
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In addition to the resistance above $106,000, there is also the Bitcoin Ichimoku cloud shows a rise in bearish pressure. This means that the psychological level of $100,000 is still at risk, and if it breaks, the current decline could deepen.
The targets for this Bitcoin price crash are well below the $90,000 level. The first major support is at $93,000, but a break below could extend the decline to $88,000 before the bulls regain equilibrium.
Featured image of Dall.E, chart from Tradingview.com