Litecoin News

Over the last few days, the Bitcoin price has fluctuated, but the most prominent moves have been upwards, going from below $90,000 to over $94,000. As expected, this rapid climb already has investors calling for a return of the bull run, but not everyone is convinced. For some, the current Bitcoin price momentum is most likely a bull trap, and crypto analyst Xanrox highlights this in a recent analysis, outlining the best level to start selling the digital asset. Why The Bitcoin Price Risks A Crash To $74,000 Xanrox's analysis focuses on the bearish formations that have appeared on the Bitcoin price crash following the recent upward move. While many in the crypto community celebrate the rise above $90,000 again, the crypto analyst sounds an alarm that this is the time to go bearish on the cryptocurrency. Related Reading: Why The Litecoin Price Could Stage A 33% Rally To $110 According to the analysis shared on the TradingView website, there has been a clear bear flag formation for the cryptocurrency. This bearish formation is visible on both the 12-hour chart and the 1-Day chart. Regardless, both of these charts point to one possible outcome, and that is an almost perfect textbook bear flag formation. In addition to the bear flag formation, Xanrox also highlights that there is a WXY corrective pattern inside the bear flag. Both of these point to a possible continuation to the initial downtrend that began after the Bitcoin price hit $126,000 back in October. As for how far the current rally could go, the crypto analyst sees it reaching as high as $96,000 before momentum runs out. This presents the "perfect" time to sell or enter a short as the price continues its decline. The target for this is an over 25% crash that will send the price going toward $74,000. Related Reading: Shiba Inu's Volume Explosion: Leading Meme Coin Barrels Ahead In This Metric The $74,000 target makes an appearance as it is a swing low from April 2024, meaning that crypto traders who are long on the digital asset would have their stop losses below it. Thus, this makes it an attractive point for market makers to push the price towards in order to clear significant liquidity. The timeframe for this to play out is placed over the next few weeks, riding out the end of 2025 and moving into January 2026. However, the swing low support at $74,000, if it holds up, could end up serving as the next bounce-off point for the Bitcoin price. Featured image from Pngtree 42, chart from TradingView.com