Bitcoin Teeters on the Brink: Bearish FVG Zone Signals Potential Crash Ahead
Bitcoin's recovery hits a wall as it stumbles into the dreaded bearish FVG zone—a classic danger signal for traders. Here's why the next 48 hours could decide its fate.
The FVG (Fair Value Gap) zone isn't just technical jargon—it's where dreams of rallies go to die. When BTC enters this territory, history shows a 70%+ chance of violent downside. And right now? The king of crypto is dancing on the edge.
Market makers smell blood. With leveraged longs at yearly highs and institutional interest waning, this could be the perfect storm for another 'Crypto Winter' special—just in time for Wall Street's summer bonuses.
Either Bitcoin bulls find a miracle, or we're staring down a 20-30% correction. Place your bets—the house always wins.
Bearish FVG Could Send Bitcoin Price Crashing
In an analysis, crypto analyst Kamran Asghar revealed that the Bitcoin retrace could only be temporary and short-lived as it has moved back into a bearish Fair Value Gap (FVG). This comes after a small bounce from $112,000 toward $115,000, with this bearish FVG lying between $114,000 and $115,500.
This fair value gap had been created following the price crash from $118,000, suggesting that the bitcoin price would be looking to fill it again. Additionally, this level acts as a major supply zone, meaning that bulls would have to turn up the buying if the Bitcoin price is to cross this level without issue.
Given the fact that the bearish FVG and the supply zone are riding ahead of the cryptocurrency, it shows that there is a lot of resistance building at this level. Kamran suggests that the next move after hitting this supply zone WOULD be a rejection from this level, leading to a further beating down of the price.
How Low Could BTC Go?
In the event of a hard rejection, the crypto analyst sees the bitcoin price tumbling further downward into mid-July levels between $107,500 and $109,000. This would mean another 5% crash for the Bitcoin price before it is able to find support.
The silver lining of this possible crash is the fact that Bitcoin has major support at this level. Thus, Bitcoin bulls could stage a rebound using this level as the next lift-off point for a recovery. Due to this, the crypto analyst warns investors to keep an eye on the digital asset to see how it reacts at this level.
Interestingly, at this time, the Bitcoin funding rate is still positive, Coinglass shows. What this means is that traders believe that the digital asset is still in a bull market, and more investors are betting on the price continuing to rise from here. However, the positive funding rate has seen some decline in the month of August, suggesting a slowdown among bulls.
