Bitcoin has been hovering around $85,000 for the past week, but a technical analysis suggests a potential downside.
A Falling Wedge – Bullish or Bearish?
Crypto analyst Xanrox sees a bearish signal in Bitcoin’s current “falling wedge” pattern. While falling wedges are often seen as bullish, Xanrox argues that this one, forming at the end of a broader downtrend, is different. The price is below key moving averages, reinforcing a bearish picture.
The Whale’s Game
This isn’t just about charts; it’s about market manipulation. Xanrox believes large players (whales) are using the wedge to lure in smaller investors. They create the illusion of a breakout to trigger buying, then reverse the market, causing widespread stop-loss orders to be triggered. The rise of institutional Bitcoin investment, particularly through ETFs, fuels this theory.
Xanrox’s Prediction: A 20% Drop?
Xanrox predicts a 20% price swing this week. But instead of a rise to over $100,000, he anticipates a drop to $67,000. This is a key support level; if it breaks, the fall could continue. Even if the 20% drop doesn’t happen immediately, it could still occur in the coming weeks. Bitcoin might test the $91,000-$108,000 range before falling. At the time of writing, Bitcoin was trading at $84,280.
