Bitcoin Nears Precipice: Analysts Warn of Potential Crash to $88,000
Bitcoin's price is once again under intense scrutiny as market trends suggest another significant downturn could be on the horizon. Following its October 10 crash, analysts are pointing to a looming "descending channel" pattern, indicating that the leading cryptocurrency may be heading for a further substantial drop, with predictions placing its bottom potentially as low as $88,000.
Bitcoin's Precarious Position
Despite currently maintaining its psychological hold above the $100,000 mark, Bitcoin has been trapped in a tight trading range between $101,000 and $105,000, lacking any discernible momentum to push higher. This lack of upward thrust, according to crypto analyst Lixing Gan, aligns with a descending trend pattern identified on TradingView, which began forming even before the October 10 crash. This bearish pattern suggests that the recent market instability was not an isolated event but rather the manifestation of an underlying weakening trend that continues to put downward pressure on Bitcoin's value.
The Looming Drop: Triggers and Targets
The previous crash was primarily fueled by massive sell-offs from large holders, often referred to as "whales," who offloaded over 390,000 BTC in recent months, triggering billions in selling pressure. Analysts interpret this as a "distribution phase," where long-term holders liquidate their assets to newer investors, inadvertently increasing the cost basis for new entrants and setting the stage for further price corrections. Currently, technical analysis reveals Bitcoin is testing the upper bound of this descending trendline, which coincides with a critical resistance level at $106,500. Should this resistance hold and the Ichimoku cloud indicator continue to show increasing bearish pressure, the $100,000 psychological support is at significant risk. Should this key level fail, the path downwards becomes clearer, with immediate major support expected around $93,000. However, if that level is breached, a more severe decline to $88,000 is anticipated before any potential recovery or stabilization.
