Bitcoin has entered a precarious situation after falling below $114,000, and sellers continue to mount pressure on it. This comes after a rise to new all-time highs, and sticking to previous trends, Bitcoin looks to be testing previous support levels before continuing on its journey. However, as the price continues to struggle, crypto analyst Xanrox has predicted that a crash is in the future, warning investors to beware of investing in BTC.
Bitcoin Shows Signs Of Crash
In the analysis, Xanrox pointed out that the Bitcoin price is already primed to crash in the short term. This is due to the appearance of a Fair Value Gap (FVG) that is yet to be filled, and the price is already pulling back down toward this level to fill it again.
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The first crash is expected to send Bitcoin to the $110,600 level, which is a previous peak. At this junction, there is a lot of support, and the Bitcoin price will probably resist the crash here for a while before continuing. The crypto analyst also explained that the strong support is due to the fact that the $110,600 level has never been tested previously.
There is also the 100-day moving average standing around this level, and this, too, provides support for the price. Given this, the crypto analyst believes that this would be good support for investors looking for intraday trades as the price hits $110,600.
Moving forward, Xanrox expects the price to eventually break below $110,600, and the next major level is sitting at $104,800. This is also a strong support level because there is a range and a bull flag here. The most important thing of all is that the fair value gap is sitting at this level to be filled. “The previous major swing low of 105,130 is something where people put a lot of stop losses below it,” the analyst said. “That’s a magnet for whales; they probably want to buy here.”
Why Price Is Headed Below $60,000
In light of the current bearish trend, Xanrox predicts that the Bitcoin price will eventually crash below $60,000. This is as a result of the completion of the five waves of the Elliot Wave Theory, suggesting that the market is now heading into the bearish portion.
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The analysis also points to the break below the trendline that began back in April, marked in red. This trendline has held as the price has climbed, not breaking in five months since then. Therefore, the current break suggests a continuation of the bearish rally. As for when the Bitcoin price will fall below $60,000, the analyst predicts that this will happen in 2026.
Featured image from Dall.E, chart from TradingView.com
