Bitcoin’s Potential $250,000 Blow-Off: Analyst Predicts 98% Crash, Here’s Why
Bitcoin’s $250,000 Peak: A Path to a 98% Crash?
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The crypto world is abuzz with speculation about Bitcoin’s future trajectory. While some are bullish, predicting a meteoric rise to $250,000, a prominent analyst has issued a stark warning: a potential 98% crash could follow.
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Gert van Lagen, a well-known crypto analyst, has shared his insights with his 106,700 followers on X (formerly Twitter). He believes that Bitcoin could indeed reach the ambitious $250,000 mark. However, he cautions that this peak could be followed by a dramatic downturn, sending the cryptocurrency plummeting to $24,000.
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The Case for a Post-Rally Crash
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Lagen highlights the overconfidence surrounding Bitcoin’s potential for continued growth. He argues that the introduction of Spot Bitcoin Exchange Traded Funds (ETFs) has led many investors to believe a 98% crash is an impossibility.
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However, Lagen emphasizes that ETF assets tend to lose significant value during economic recessions. He believes that the Bitcoin price could experience a \”blow-off\” to $250,000, followed by a wave of profit-taking. As institutional investors, who may have driven the initial rally, begin to sell off their holdings, this could trigger a massive \”shake out of the century,\” leading to the predicted 98% crash.
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Technical Indicators and the Bearish Outlook
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Lagen’s analysis draws on technical indicators. He points to a High-Time Frame (HTF) rising wedge on the Bitcoin price chart using the \”Syslog scale.\” This indicator, he argues, suggests a price target between $1,000 and $10,000.
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He further suggests that if Bitcoin experiences this anticipated crash, it would require four halving events for the cryptocurrency to return to its previous $200,000 high.
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Breaking the $73,000 Threshold: A Potential Shift
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While Bitcoin has experienced a recent surge, exceeding 7.8% gains this week, Lagen remains cautiously bearish. He sees a \”triangle bearish continuation pattern\” in Bitcoin’s price action, potentially pointing towards a downward trend.
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Lagen has set a new target of $71,200 for Bitcoin, suggesting that a continued downward trend is possible. However, he also acknowledges a potential shift in the trend. If Bitcoin breaks the $73,000 threshold, it could invalidate the triangle bearish continuation pattern and potentially lead to a stronger upward momentum.
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The crypto market remains volatile, with the potential for both significant gains and losses. It’s essential to approach investments with caution and conduct thorough research before making any decisions.