Bitcoin’s price is hanging around its all-time high, but one analyst, FriendlyRox, isn’t convinced the party will last. They’re predicting a massive price crash, potentially cutting Bitcoin’s value in half.
The Warning Signs
FriendlyRox points to several key indicators flashing red:
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Falling Volume and Momentum: Trading volume and market momentum are both dropping, despite positive headlines about institutional investment and decreasing exchange supply. July’s daily trading volumes have consistently stayed below $100 billion, a significant decrease.
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Historical Price Pattern: Bitcoin’s price recently touched its 50-day Exponential Moving Average (EMA) and then retreated. Historically, this pattern has often preceded major price drops.
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Other Bearish Signals: Technical indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are also showing negative momentum.
All these factors combined are painting a bearish picture for Bitcoin.
The Predicted Crash
FriendlyRox forecasts a roughly 50% drop from the current price. They believe Bitcoin will retrace to its 50-day EMA, which currently sits around $60,000. This would be a massive crash, comparable to the 2020 COVID crash and the 2022 FTX fallout, likely wiping out a significant portion of altcoin value.
When Will It Happen?
There’s no precise timeline for this predicted crash. FriendlyRox’s analysis suggests it could take a couple of years to fully play out. Ultimately, they conclude, “Let’s see how it unfolds.”
