Bitcoin prices are very close to the highest ever, dominating the market in terms of profit over the past few months. Given how much the price has increased during this period, it is expected that it will be distorted towards the possibility of drawdown as prices will be revised after continuous movement upward. This is highlighted by Crypto analyst Xanrox. Xanrox warned investors about the imminent price crash of Bitcoin, revealing the best time to actually buy digital assets.
Analysts call Bitcoin price recovery as takeout
Bitcoin prices rose last week, temporarily moving around the $110,000 level before returning downwards. This points to a steady climb into participation as crypto investors start to place bets again. However, the market celebrated the climb, but Crypto analyst Xanrox called it a bearish development.
The analysis focuses on the rising trend in Bitcoin prices, tapping $110,000. But instead of a clean break, he points out that digital assets were unable to continue the uptrend even after they had escaped from its descending channel. Given this, Xanrox explains that this is a false breakout in the pattern, or what is commonly known in the crypto community as “bull traps.”
Bulltraps mean that they are ultimately bearish in nature. So, while Bitcoin prices appear to be on the rise, if Xanrox is right, it means that cryptocurrencies will soon see a recession, which will cause a price crash.
Additionally, analysts explain that while the uptrend over the past week now locks bulls in their strengths, whales require liquidity and outage losses from orders. So to seize this liquidity, the whales need to drive prices downwards, with the 0.618 Fibonacci retreat before falling below $103,000 is the most likely culprit.
When is the best price to enter BTC?
To understand where Bitcoin prices are heading next, Crypto analysts apply Elliot Wave theory to current trends. He explains that Wave 1 is already complete. So, Bearish Wave 2 is doing well now. This is an ABC correction.
This amendment formation encourages analysts to encourage investors to wait before entering a long position. 0.618 Fibonacci’s retracement level is $102,909, making it the best time to enter a digital asset. Xanrox also points out that there is no fair value gap (FVG) that it plans to fill quickly during this period between $102,000 and $104,000.
However, despite the expected retracement, the overall trend in Bitcoin prices remains bullish in Elliott Wave theory. Once Wave 2 is fully played, it is expected that Wave 3 will start. This is usually an even more bullish move compared to the Wave 1, allowing BTC to be placed in the path to a new all-time high.
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