Bitcoin’s price has been stuck between $108,000 and $112,000 for the past week, going nowhere fast. It keeps getting rejected around $112,000, and technical indicators show some serious pressure.
A Bearish Outlook?
Crypto analyst Daan Crypto thinks Bitcoin could crash below $100,000. He’s seeing signs on the 4-hour chart that suggest a drop to the monthly lows. The chart shows Bitcoin’s been trading in a tight range since August 25th, with a weak base around $107,000. A “stop-hunt sweep” – a sudden price drop to trigger stop-loss orders – could easily happen, leading to widespread panic selling and a price plunge below $100,000.
However, there’s a potential lifeline. Daan sees support between $103,000 and $105,000. If the price falls below $107,000, this zone could be a good entry point for long-term investors.
A Bullish Comeback? It’s Possible!
But it’s not all doom and gloom. Daan outlines two scenarios where Bitcoin bulls could take control:
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Scenario 1 (Strong Bullish Signal): If Bitcoin breaks above $115,000 and stays there, it would signal a major shift in momentum, wiping out any short-term bearish trends.
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Scenario 2 (Slightly Less Bullish, But Still Positive): A quick dip below the monthly lows at $107,000, followed by a strong recovery back above $107,000 and $112,000, could trigger a significant rally lasting one to two months, potentially carrying through October and November.
For now, Daan’s playing it safe, only doing short-term trades. At the time of writing, Bitcoin is trading at $111,733, slightly up for the day.
