Bitcoin’s price has been fluctuating around $85,000 over the past week, with a trading range between $83,200 and $86,000. While there has been some positive buying momentum in the last 24 hours, a closer look at the technical analysis suggests a potential downside risk.
A crypto analyst named Xanrox recently presented a bearish case for Bitcoin on the TradingView platform. Contrary to the common belief that falling wedges are bullish reversal patterns, Xanrox argues that the current falling wedge pattern might actually be a trap set by whales. According to his analysis, Bitcoin could potentially drop to $67,000 before experiencing another significant upward movement.
The daily candlestick timeframe chart reveals that Bitcoin is trading below the 20, 50, 100, and 200 daily moving averages within a clean wedge structure. This setup indicates a clear downtrend rather than a reversal scenario. Xanrox suggests that whales and institutions with substantial liquidity could be taking advantage of this setup to manipulate the market and trigger stop losses.
This perspective aligns with the growing trend of Bitcoin being viewed as a more institutional asset, especially with the rise of Spot Bitcoin ETFs. The increasing involvement of institutions in the cryptocurrency market could further impact price movements.
Xanrox predicts a 20% move for Bitcoin in the upcoming week, but this move is anticipated to be a downside one rather than an upside surge. The analyst has identified $67,000 as a crucial level for Bitcoin to test in the near future, particularly if the current wedge pattern fails as expected.
Even if the projected 20% downside move doesn’t materialize immediately, there is still a possibility of it happening in the following weeks. Xanrox suggests that Bitcoin might retest the upper zone between $108,000 and $91,000 before potentially heading lower.
As of now, Bitcoin is trading at $84,280, reflecting the uncertainty and volatility in the cryptocurrency market. It will be interesting to see how the price action unfolds in the coming days and weeks as investors and traders navigate through these challenging market conditions.
Overall, while the short-term outlook for Bitcoin may seem uncertain, it’s essential for investors to stay informed and cautious in their trading decisions. Keeping an eye on technical analysis and market trends can provide valuable insights into potential price movements and help mitigate risks in the volatile cryptocurrency market.