Bitcoin (BTC) Valuation Might Drop Under $100,000, According to an Expert's Alarming Prediction: Reasons Explained
In a recent analysis, renowned technical analyst Captain Faibik has predicted a sharp drop in Bitcoin's price. The significance of a Bitcoin rising wedge pattern, as explained by Captain Faibik, serves as a warning for a potential bearish reversal and significant correction.
A rising wedge is a technical chart pattern formed by converging upward trendlines—higher highs and higher lows—but with decreasing momentum, often signaling an impending breakdown. If Bitcoin were to close daily below $113,000, this would confirm the breakdown of the pattern and likely trigger a 10-20% correction, potentially pushing the price down to around $95,000–$98,000.
The rising wedge indicates waning bullish momentum despite recent price increases, which typically precedes price declines in volatile markets. The $113,000 support level is critical; a daily close below it would confirm the breakdown and escalate a decline. Historical studies suggest that rising wedges predict price drops with about 70% accuracy in volatile assets like Bitcoin, though confirmation with volume is necessary to avoid false signals.
The pattern forms after a surge to approximately $118,000, indicating a possible exhaustion of upward movement and signaling traders to prepare for increased volatility and potential declines. If Bitcoin maintains support above $113K, it might avoid this sharp decline and possibly continue a bullish trajectory.
At press time, Bitcoin is trading at $115,968, a 1.63% drop in 24 hours and a 3.58% dip over the past week. The current structure has traders on edge, with concerns about a PO3 trap, where smart money may have exited near the highs. The area between $116,000 and $120,000 has acted as a tight range, and the price failed to break through convincingly in this area, which could confirm this bearish trap.
In summary, the rising wedge pattern and the critical $113,000 price level represent a major technical test for Bitcoin. A breakdown below this point would likely lead to a notable correction to mid-to-high $90,000s, while holding above could keep bullish prospects alive. This analysis urges traders to watch volume and price action closely for confirmation. The key level to watch is $114,000, as buying pressure appears to be fading, and these losses lend weight to the bearish outlook. If support at $114,000 gives way, a drop toward $95,000 to $98,000 could be triggered, erasing weeks of gains. If the current trend breaks down, Bitcoin could fall below the $100,000 mark.
Investing in Bitcoin's finance sector could face a significant correction due to a potential bearish reversal, as predicted by Captain Faibik based on the Bitcoin's rising wedge pattern. The technology underpinning Bitcoin's price movements indicates waning bullish momentum, which typically precedes price declines in volatile markets, such as this one.
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