Bitcoin’s price has seen ups and downs recently, but the overall trend has been upward, climbing from below $90,000 to over $94,000. This rapid increase has some investors hopeful for a renewed bull run, though others remain skeptical. Crypto analyst Xanrox, for instance, warns that the current momentum may be a bull trap and has identified a key level for selling the asset.
Xanrox points to bearish patterns forming on Bitcoin’s charts following its recent rise. While many celebrate the return above $90,000, the analyst cautions that it may be time to turn bearish. According to a TradingView analysis, a clear bear flag pattern is visible on both the 12-hour and daily charts, suggesting a potential continuation of the downtrend that began after Bitcoin hit $126,000 in October.
The analysis also notes a WXY corrective pattern within the bear flag. Xanrox expects the current rally could reach as high as $96,000 before losing steam, which would present an ideal opportunity to sell or enter a short position. The projected target is a drop of over 25%, pushing the price toward $74,000.
This $74,000 level is significant as it marks a swing low from April 2024, where many long positions likely have stop-loss orders set. This makes it an attractive target for market makers to trigger a wave of liquidations. The analyst anticipates this move could unfold over the coming weeks, extending from late 2025 into January 2026.
However, if the $74,000 support level holds, it could also serve as a bounce-off point for Bitcoin’s next upward move.
Frequently Asked Questions
Of course Here is a list of FAQs about the potential for a sharp decline in Bitcoins price framed around the idea of when to consider selling
General Beginner Questions
Q Why do people think this Bitcoin surge will end in a sharp decline
A Historically rapid price increases in crypto are often followed by significant corrections This pattern is driven by profittaking hype fading and macroeconomic factors shifting
Q What does a sharp decline or correction actually mean
A It means the price could drop significantly and quicklythink 20 30 or more from its peakin a relatively short period
Q Im new to this Should I just sell all my Bitcoin now
A Not necessarily The key is having a plan Blindly selling can mean missing further gains Instead consider setting a target price to take some profits or using a stoploss order to protect your initial investment
Q Whats the simplest strategy to avoid losing everything in a crash
A The simplest rule is Dont invest money you cant afford to lose Beyond that taking profits by selling a portion of your holdings when prices are high ensures you lock in some gains
Strategy Timing Questions
Q When is the best time to consider selling during a surge
A Theres no perfect time but common strategies include selling a portion when prices hit a preset profit target when you see extreme greed in market sentiment indicators or when mainstream media hype becomes overwhelming
Q What are some specific signs that a decline might be coming
A Watch for 1 A sharp increase in leveraged trading 2 FOMO dominating social media 3 Major negative news from regulators or 4 A breakdown below key support levels on the price chart
Q Should I use a stoploss order How does it help
A A stoploss order automatically sells your Bitcoin if the price falls to a certain level It helps limit your losses without you having to watch the markets constantly Its a crucial tool for risk management