Bitcoin is currently facing a critical situation after dropping below $114,000, with selling pressure intensifying. This decline follows a surge to new all-time highs, and consistent with past patterns, Bitcoin appears to be testing earlier support levels on its trajectory. Nevertheless, as the price encounters difficulties, crypto analyst Xanrox warns of a potential crash, advising caution to investors considering BTC.
Bitcoin Displays Signs of Impending Crash
In his analysis, Xanrox highlighted that Bitcoin’s price is positioned for a short-term crash. This prediction is based on an unfilled Fair Value Gap (FVG), suggesting the price is retracting toward this level for completion.
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The initial crash is forecasted to push Bitcoin down to the $110,600 mark, a previous peak. At this point, substantial support exists, likely enabling the Bitcoin price to withstand the crash for a period before moving forward. Xanrox elaborated that this robust support stems from the $110,600 level having never been tested before.
Additionally, the 100-day moving average is positioned at this level, which also supports the price. Given this, the crypto analyst posits that this would serve as solid support for investors pursuing intraday trades as the price approaches $110,600.
Looking ahead, Xanrox anticipates that the price will ultimately break beneath $110,600, with the next significant level being $104,800. This area also offers strong support, given the presence of a range and a bull flag. Crucially, the fair value gap is located at this level, awaiting fulfillment. “The previous major swing low of 105,130 is a point where many have positioned stop losses,” the analyst remarked. “This makes it a target for whales; they likely wish to acquire here.”
Reasons for Pricing Below $60,000
Given the ongoing bearish momentum, Xanrox predicts that Bitcoin’s price will ultimately dip beneath $60,000. This forecast follows the completion of the five waves of the Elliot Wave Theory, indicating that the market is entering its bearish phase.
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The analysis further highlights the break below the trendline established in April, denoted in red. This trendline has been a support barrier for five months without disruption, suggesting that the current break may indicate a continuation of the downward trend. As to when Bitcoin’s price will fall below $60,000, the analyst estimates this could occur in 2026.
Featured image from Dall.E, chart from TradingView.com
