The recent surge in Bitcoin's price, pushing it from under $90,000 to over $94,000, has sparked renewed excitement among investors hoping for a sustained bull run. However, not all market participants share this optimism. Prominent crypto analyst Xanrox suggests that this rally is merely a "bull trap" and outlines critical selling points before an anticipated market correction.
Bitcoin's Bearish Undercurrents Emerge
Xanrox's analysis points to clear bearish formations on Bitcoin's price charts following its latest upward movement. Despite the crypto community celebrating the break above $90,000, the analyst issues a stern warning, indicating a looming bearish trend. A distinct "bear flag" pattern, often a precursor to further declines, is evident on both the 12-hour and 1-day charts, aligning with textbook technical analysis for a downturn.
Identifying the Selling Window and Crash Target
Adding to the bearish outlook, Xanrox identifies a WXY corrective pattern within the broader bear flag formation. Both indicators suggest a continuation of the initial downtrend that began after Bitcoin reached $126,000 in October. The current rally is projected to peak at around $96,000 before its momentum dissipates. This window is highlighted as the "perfect" time for investors to either sell their holdings or initiate short positions, anticipating a substantial drop. The analyst forecasts an over 25% crash, driving Bitcoin's price towards the $74,000 mark. The target of $74,000 is significant, representing a swing low from April 2024. This level is crucial as many long positions would likely trigger stop-losses below it, making it an attractive liquidation zone for market makers. This price action is expected to unfold over the coming weeks, spanning the end of 2025 and into January 2026. Should the $74,000 support level manage to hold, it could, however, serve as a potential bounce-off point for Bitcoin's price trajectory.
