Bitcoin traders are once again on edge as the cryptocurrency tests their patience. Captain Faibik, a well-known crypto analyst, has issued a warning about Bitcoin’s current price pattern. According to Faibik, Bitcoin is currently stuck inside a Rising Wedge pattern, and he believes that if certain signs play out, BTC could drop below $100,000 in the near future.
The recent drop in Bitcoin’s price, from its key support level of $118,000 to around $115,710, has been attributed to whales selling off their holdings. Galaxy Digital reportedly sold 10,000 BTC worth about $1.18 billion and withdrew $370 million USDT from exchanges, causing a 3% drop in Bitcoin’s price in just one hour. This massive sell-off also led to approximately $144 million in liquidations, mostly affecting long positions.
One key level to watch closely, according to Faibik, is $113,000. Bitcoin must stay above this level to avoid a larger drop. If the price closes below $113,000, it could lead to a quick breakdown. This level is crucial as it indicates the strength of buying in the market.
Faibik is advising caution to traders and is waiting for a clear daily close below $113,000 before making any trading decisions. He warns that the market may be setting a trap for late buyers, with a Bearish PO3 pattern on the daily chart suggesting a potential price manipulation to trap unsuspecting traders.
Despite a 23% increase in daily trading volume to $87.46 billion, most of this activity is attributed to whales taking profits and shaking out weak hands. New traders entering the market at this point may find themselves falling into a trap set by experienced players.
If Bitcoin breaks below the wedge pattern, Faibik predicts that the price could fall into the $95,000 to $98,000 range. While this drop may be unsettling for some, patient traders see it as an opportunity to buy Bitcoin at a discounted price before the next upward movement.
In conclusion, the current price pattern of Bitcoin is causing concern among traders, with warnings of a potential drop below $100,000. It is essential for traders to exercise caution and wait for clear signals before making any trading decisions in the volatile crypto market.