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Over the last few weeks, analysts have been predicting that the Bitcoin price could crash again after the initial October 10 crash. This is because of the weakening market trends that have shown that Bitcoin is still favoring a downtrend at this point. Crypto analyst Lixing_ Gan on the TradingView website also shares this view, with the appearance of a descending trend pattern that suggests that the Bitcoin price is more likely to fall than rise.
So far, the Bitcoin price has been able to maintain its hold above the psychological level of $100,000, despite bears briefly pushing the price below this level. It has been trading in a tight range of $101,000 to $105,000 during this time, but with no notable momentum that could push its price higher. This tight range, unfortunately, plays into the descending pattern that maps a path downward.
According to the crypto analysts chart, the descending pattern was formed at the start of October, well before the historic 10/10 crash. This means that the bearish trend had begun much earlier, and the resultant crash was only in response to bullish positions weakening across the board.
This was triggered by massive sell-offs, mainly among whales and holders that have held onto their BTC for a notable amount of time. Over the last few months, these long-term holders have sold off more than 390,000 BTC, triggering billions of dollars in selling pressure. Given this, it is no surprise that the Bitcoin price broke down the way it did at the start of October.
These sell-offs from the long-term holders, though, the crypto analyst believes, are a distribution phase. As they sell off their holdings to newer investors, the cost basis for each Bitcoin begins to rise, increasing the likelihood that buyers will hold for longer.
Looking at the descending trendline from here, technical analysis suggests that the Bitcoin price is still testing the upper bound of the trendline. As the analyst explains, this upper bound happens to coincide with $106,500, which has been a major resistance for the cryptocurrency.
In addition to the resistance above $106,000, the Bitcoin Ichimoku cloud also shows a rise in bearish pressure. This means that the $100,000 psychological level is still at risk, and if it breaks, then the current decline could deepen.
The targets for this Bitcoin price crash lie well below the $90,000 level. The first major support is at $93,000, but a break below here could extend the decline to as low as $88,000 before the bulls find their footing again.