Analyst Warns of Potential Bearish Trend for Bitcoin, Targeting $67,000

Analyst Xanrox warns that Bitcoin’s current falling wedge might be a whale trap, potentially driving the price down to $67,000. Despite positive buying momentum, the wedge forms at the end of a trend and suggests ongoing bearish activity. A predicted 20% price move indicates a decline rather than an increase. Bitcoin’s price was $84,280 at the time of reporting.

Bitcoin has been attempting to maintain its price near $85,000, oscillating between $83,200 and $86,000 over the past week. Recent buying momentum has become positive; however, technical analysis indicates a potential downside risk that traders should consider. Analyst Xanrox warns that the current falling wedge formation may not indicate a bullish trend but rather a trap set by market whales, potentially driving Bitcoin’s price down to $67,000 before any upward movement occurs.

Xanrox highlights that while falling wedges are traditionally perceived as bullish reversal patterns, the present situation is distinct as it is occurring at the end of a broader trend. The Bitcoin price is currently situated within a clearly defined wedge, trading significantly below the 20, 50, 100, and 200 daily moving averages. This scenario suggests a continuing downtrend rather than a setup for a reversal.

Market dynamics, including liquidity mechanics and psychological factors, exacerbate this bearish outlook. Whales, typically institutional investors, are thought to manipulate the market, requiring retail buyers to generate sufficient trading volume. They may create a false sense of breakout potential, luring retail investors in, only to reverse the market and trigger widespread stop losses.

Despite a larger institutional focus on Bitcoin, highlighted by the emergence of Spot Bitcoin ETFs, Xanrox posits a 20% price movement in the week ahead. This projection indicates that rather than rising, Bitcoin could fall to around $67,000. If this level is breached, it would serve as a critical support point. Should the downward movement not occur instantly, it remains plausible in subsequent weeks.

At the time of reporting, Bitcoin was priced at $84,280, with analysts monitoring the situation closely for potential breakout patterns and price movements in the near future.