In recent weeks, analysts have warned that Bitcoin’s price may face another crash following the initial drop on October 10. Market trends continue to weaken, indicating that Bitcoin remains in a downtrend. Crypto analyst Lixing_Gan on TradingView supports this outlook, pointing to a descending pattern that suggests further declines are more likely than a recovery.
Bitcoin is currently at risk of a significant drop below $90,000. So far, it has managed to stay above the key $100,000 mark, despite brief dips below this level. The price has been confined to a narrow range between $101,000 and $105,000, lacking the momentum to push higher. Unfortunately, this tight trading range aligns with the descending pattern, signaling a potential downward move.
According to the analyst’s chart, this bearish pattern began forming at the start of October, well before the October 10 crash. This indicates that the downtrend was already in motion, and the crash was a result of weakening bullish positions across the market. The sell-off was driven largely by long-term holders and whales, who have sold over 390,000 BTC in recent months, creating billions in selling pressure.
Given these conditions, Bitcoin’s breakdown in early October was not surprising. The analyst views these sales as a distribution phase, where long-term holders transfer their assets to new investors. This raises the average cost basis for Bitcoin, potentially encouraging buyers to hold for longer periods.
From a technical perspective, Bitcoin is still testing the upper boundary of the descending trendline, which aligns with the $106,500 resistance level. Additionally, the Ichimoku cloud shows increasing bearish pressure, putting the $100,000 support at risk. If this level breaks, the decline could accelerate, with initial support at $93,000 and a possible drop to $88,000 before any recovery.
Frequently Asked Questions
Of course Here is a list of FAQs about the statement A downward trend channel could push Bitcoins price down to 88000 designed to be clear and helpful for all levels of investors
Beginner Definition Questions
1 What is a downward trend channel
A downward trend channel is a pattern on a price chart where the price is consistently making lower highs and lower lows moving between two parallel downwardsloping lines It shows a period of sustained selling pressure
2 What does 88000 represent in this context
The 88000 figure is a projected price target Its the level where the lower boundary of the trend channel is expected to be if the current downward pattern continues
3 Is this a prediction or a guess
Its a technical analysis projection not a guaranteed prediction Its based on the idea that historical price patterns can indicate future movement but many external factors can change the outcome
Mechanism Analysis Questions
4 How does a trend channel push the price down
It doesnt physically push the price Instead traders and algorithms watch these levels When the price hits the top of the channel they often sell and when it falls to the bottom some may buy In a downward channel this collective action can create a selffulfilling cycle that continues the downtrend
5 What happens if Bitcoin breaks above the downward channel
A break above the upper trendline especially on high volume is a strong bullish signal It suggests the downtrend is over and a new uptrend or a period of consolidation may be beginning invalidating the 88000 target
6 What other factors could affect this prediction
Major news overall market sentiment macroeconomic factors and unexpected events can all override a technical pattern
Strategy Practical Tips
7 Should I sell my Bitcoin if I see this pattern
Not necessarily A trend channel is one tool among many Its crucial to consider your own investment strategy risk tolerance and other market factors before making a decision Many investors use such patterns to plan entry points not just exits
8 How can I use this information as a potential buyer
If you believe in