Bitcoin News Today: Bitcoin Dips 1.63% 24-Hour 3.58% Weekly as Analysts Flag Crash Risk Below $100k

Bitcoin’s price is facing renewed scrutiny as technical analysts highlight potential risks of a significant downturn. According to Captain Faibik, a prominent cryptocurrency analyst, Bitcoin is forming a rising wedge pattern on the daily chart—a bearish signal often associated with trend reversals. This pattern suggests weakening momentum in the current uptrend, with the price consolidating near the upper half of the wedge. A critical level to watch is $114,000; if this support breaks, it could trigger a sharp decline toward $95,000–$98,000 [1].

The analyst also warns of a potential "PO3 trap," where price temporarily surges to entice buyers before reversing. This strategy, he argues, may indicate that institutional investors (referred to as "smart money") have already exited near recent highs, leaving retail traders vulnerable to a liquidity sweep. The $116,000–$120,000 range has failed to generate sustained bullish momentum, reinforcing concerns about the asset’s strength [1].

A key confirmation for the bearish scenario would be a daily candle close below $113,000. Such a move would validate the wedge breakdown and likely intensify downward pressure. Traders are advised to avoid entering long positions in the near term, as volume spikes during a breakdown could amplify the sell-off. As of the latest data, Bitcoin traded at $115,968 on CoinGecko, marking a 1.63% decline in 24 hours and a 3.58% drop over the past week. These figures align with the deteriorating technical outlook [1].

The market’s vulnerability is further underscored by Bitcoin’s inability to break decisively above key resistance levels. Despite weeks of consolidation, the asset remains trapped in a tight range, signaling indecision among participants. If the downward trend persists, a correction toward $95,000 could erase recent gains and test long-term support zones. Analysts emphasize that the next few daily closes will be pivotal in determining whether the bearish scenario unfolds [1].

The implications extend beyond speculative trading. Institutional holders, including companies with significant crypto exposure, face heightened risk in a prolonged downturn. While the current analysis focuses on short-term technical indicators, broader macroeconomic factors—such as shifting investor sentiment and ETF outflows—could amplify volatility. However, the immediate trigger appears rooted in the structural weaknesses identified by Captain Faibik [1].

As the market awaits confirmation of the breakdown, caution remains the prevailing theme. The interplay between technical patterns and institutional behavior highlights the fragility of Bitcoin’s current position. Investors are advised to monitor key levels closely and prepare for potential scenarios, whether the asset rebounds or follows the predicted trajectory [1].

Source: [1] [Bitcoin (BTC) Price Could Crash Below $100k, Expert Warns] [https://blockonomi.com/bitcoin-btc-price-could-crash-below-100k-expert-warns-heres-why/]