Expert Predicts Bitcoin’s Biggest Crash in Years After Bull Trap

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Source: Finbold

Bitcoin might crash after a fake price rise that failed to reach new highs. Expert trader Alan Santana sees multiple danger signs in current market conditions. Bitcoin has dropped for five days straight – something not seen since May 2023. Market data shows consistently low trading volumes and weakening price support levels, raising serious concerns about future price stability.

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Navigating Bitcoin’s Volatility: Expert Insights and Price Analysis

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Bitcoin (BTC) Critical Support Levels Under Pressure

BTC now sits at a key price point of $69,000, with mounting pressure from sellers. Santana warns of a major market crash that could push prices down to $40,000 if it drops below this mark.

Recent charts show a clear “rounded top” pattern, which typically signals more price drops ahead. A failed attempt to break through the $73,800 resistance level strengthens the bearish case.

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Technical Warning Signs Mount

“Two instances earlier this year produced 5 days red. In August to complete the major crash and also in June halfway through a bearish move, this has never happened right after a major high/peak. This can signal that a sudden surprise reversal will happen and we won’t see any more red and Bitcoin will grow rather than crash. Or, we will witness the biggest crash in years. The latter is the most likely scenario,” Santana explained.

Market watchers note that the price must stay above $68,000 to prevent accelerated selling pressure.

Bitcoin Market Sentiment Shifts

The cryptocurrency hit a strong resistance wall at $70,000 despite showing promising momentum through October. Market expert Ali Martinez found signs of selling pressure in weekly price charts.

High-level buyers appear to be stepping back from current prices, with trading volumes dropping steadily across major exchanges. These signs point to weakening market confidence.

Short-term Outlook

Bitcoin’s current price is $67,979, showing a 2% drop today while maintaining a modest 0.7% weekly gain. Smart traders are using close stop-losses to protect against sudden market drops. The upcoming presidential election could shift market direction significantly. Many analysts believe a Trump victory might boost crypto prices due to his favorable stance on digital assets.

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The overall price outlook remains negative unless Bitcoin successfully moves above $70,000 and maintains that level. Technical charts, historical patterns, and current market sentiment suggest bigger price swings ahead of the expected market crash. The risk of a significant drop looks much stronger than the chances of continued upward movement.