The Current Bitcoin Price Pump Will End In A Crash – Here’s When To Start Selling
Over the last few days, the Bitcoin price has fluctuated, but the most prominent moves have been upwards, going from below $90,000 to over $94,000. As expected, this rapid climb already has investors calling for a return...
Archive context
Older archive item. Useful for background and entity history, but not a fresh market-moving signal.
Over the last few days, the Bitcoin price has fluctuated, but the most prominent moves have been upwards, going from below $90,000 to over $94,000. As expected, this rapid climb already 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, outlining the best level to start selling the digital asset.
Why The Bitcoin Price Risks A Crash To $74,000Xanrox’s analysis focuses on the bearish formations that have appeared on the Bitcoin price crash following the recent upward move. While many in the crypto community celebrate the rise above $90,000 again, the crypto analyst sounds an alarm that this is the time to go bearish on the cryptocurrency.
According to the analysis shared on the TradingView website, there has been a clear bear flag formation for the cryptocurrency. This bearish formation is visible on both the 12-hour chart and the 1-Day chart. Regardless, both of these charts point to one possible outcome, and that is an almost perfect textbook bear flag formation.
In addition to the bear flag formation, Xanrox also highlights that there is a WXY corrective pattern inside the bear flag. Both of these point to a possible continuation to the initial downtrend that began after the Bitcoin price hit $126,000 back in October.
As for how far the current rally could go, the crypto analyst sees it reaching as high as $96,000 before momentum runs out. This presents the “perfect” time to sell or enter a short as the price continues its decline. The target for this is an over 25% crash that will send the price going toward $74,000.
The $74,000 target makes an appearance as it is a swing low from April 2024, meaning that crypto traders who are long on the digital asset would have their stop losses below it. Thus, this makes it an attractive point for market makers to push the price towards in order to clear significant liquidity.
The timeframe for this to play out is placed over the next few weeks, riding out the end of 2025 and moving into January 2026. However, the swing low support at $74,000, if it holds up, could end up serving as the next bounce-off point for the Bitcoin price.
Why this matters
This bitcoin story adds another data point to the current market tape and is useful when read alongside nearby source coverage.
Original source
Read on NewsBTCRelated market context
Bitcoin Price Analysis: Can BTC Clear $80K This Week?
Bitcoin price analysis today shows the asset is trading at $77,552.01, up a modest 0.19% over the past 24 hours, as the market dig...
Bitcoin (BTC) Price Prediction: $77K Breakout, 26.8% Weekly Surge, and $1B in ETF Inflows Fuel Bullish Momentum Toward $95K
The move has pushed the Bitcoin price to its highest level in roughly three months and brought the $80,000 area back into focus. T...
PrimeXBT: Is this the start of a Bitcoin bull run? A 2022 signal appeared before the rally
A weekly momentum divergence formed on the Bitcoin chart ahead of last week’s advance, and the daily reading has since made a move...
Bitcoin Short Squeeze Wipes Out $1.2 Billion in Bearish Bets as Price Nears $77,000
Bitcoin hit $77,000 as a short squeeze wiped out $1.21 billion in bearish bets. $1.5 billion in total crypto liquidations hit 178,...
Bitcoin hits $80,000’s doorstep just as the ETF bid disappears for the weekend
Bitcoin enters the weekend within striking distance of $80,000, registering an intraday high at $79,500 on Aug. 21. The move caps...
Bitget CEO sees Bitcoin near current levels at year-end, doubts US will buy BTC
Gracy Chen says macroeconomic uncertainty could keep Bitcoin within $10,000 to $20,000 of current levels, while US government purc...