In recent days, the Bitcoin price has fluctuated, but the most notable moves have been up, from below $90,000 to over $94,000. As expected, this rapid climb has investors calling for a return of the bull run, but not everyone is convinced. For some, the current Bitcoin price momentum is most likely a bull trap, and crypto analyst Xanrox highlights this in a recent analysis, in which he best level to start selling the digital property.
Why Bitcoin Price Risks a Crash to $74,000
Xanrox’s analysis focuses on the bearish formations that have appeared about the Bitcoin price crash after the recent upward move. While many in the crypto community are once again celebrating the rise above $90,000, the crypto analyst is sounding the alarm that now is the time to turn bearish on the cryptocurrency.
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According to the analysis shared on the TradingView website, there is a clear bear flag formation for the cryptocurrency. This bearish formation is visible on both the 12-hour chart and the 1-Day chart. Either way, both graphs point to one possible outcome, and that is a almost perfect textbook bears flag formation.
In addition to the bear flag formation, Xanrox also highlights that there is a WXY correction pattern in the bear flag. Both indicate a possible continuation of the initial downtrend that started after Bitcoin prices reached $126,000 in October.
As for how far the current rally could go, the crypto analyst expects it could reach $96,000 before the momentum runs out. This is the “perfect” time to sell or enter a short position as the price continues to fall. The target for this is a crash of more than 25%, which will take the price towards $74,000.
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The $74,000 target comes up because it is a swing low from April 2024, meaning crypto traders who are long the digital asset would have their stop-loss below it. So this makes it an attractive point for market makers push the price up to free up significant liquidity.
The time frame in which this will play out is placed in the next few weeks, from late 2025 to January 2026. However, the swing low support at $74,000, if it holds, could ultimately serve as the next rebound point for the Bitcoin price.
Featured image of Pngtree 42, chart from TradingView.com