Cryptocurrency experts predict bitcoin’s fall to $ 88,000

Over the past four days, bitcoin BTC $117,722.00 Mezo Wrapped BTC -2.93% Market capitalization $42.32 million VOL. 24 hours $1.84 billion has lost almost 8% of its all-time high of more than $ 124,000 and was trading at around $ 115,300 at the time of publication. Technical indicators indicate an increased risk of further decline.

An analyst under the nickname Captain Faibik drew attention to the breakout of the rising wedge pattern on the daily chart, which is traditionally considered a bearish signal. According to statistics, in a bull market, this formation works out in 81% of cases with an average decline of 38%. The nearest support is the $ 110,000−112,000 zone, then $ 105,000−108,000. With further pressure, the price may drop to the «psychological» range of $ 98,000−100,000, and in the worst-case scenario, even to $ 88,000.

At the same time, there is an alternative option. If bitcoin stays above the 50-day exponential moving average (EMA), the market may resume growth to the upper boundary of the wedge near $ 125,000.

Swissblock experts also drew attention to the formation of a «double top» on the weekly chart. A similar situation was observed in 2021, when the BTC price fell by 77%. If the scenario repeats itself, then in September, the price may drop to the EMA level of $ 94,750.

Glassnode’s online data shows a decrease in the number of large addresses: the number of wallets with a balance of more than 10,000 BTC fell to an annual minimum, and holders of 1000 to 10,000 BTC are also reducing their positions, recording profits at peaks. However, unlike in 2021, the current cycle is taking place in the context of an expected Fed rate cut, which could provide additional liquidity and partially offset technical weakness.