Bitcoin’s Rollercoaster: Two Scenarios Predict a Price Crash After Recovery

Bitcoin's latest rally has traders buzzing—but storm clouds loom on the horizon.

Scenario 1: The Double-Top Trap

History rhymes as BTC nears its previous ATH, only to face a brutal rejection. Whale wallets start dumping, liquidity evaporates, and suddenly that 'buy the dip' mantra sounds hollow.

Scenario 2: The Dead Cat Bounce

A 20% recovery? Cute. Market makers bait retail into chasing pumps before pulling the rug—classic Wall Street tactics, now with extra blockchain flavor.

Either way, the charts whisper trouble. And if you believe this cycle's 'institutional adoption' narrative will save you, remember: banks always eat first.

Lower Trendline Break Points To Bearish Developments

The analysis highlights the two possible directions that the bitcoin price could be headed in after the fall from its new all-time highs. Both scenarios start out with a bullish push upward, and then a bearish decline. However, with each one, there is a different possible peak before resistance kicks in.

In both cases, the first trigger is the fact that the Bitcoin price had broken out of the lower trendline of the channel. This comes after it had initially broken the ascending channel that it had been trading inside of, with the result being higher highs and higher lows. Thus, the break below the trendline means that bearish pressure is beginning to dominate.

With the bearish pressure mounting and sellers taking control, there are now two ways that the price could go. The first of these is that it continues to rally and then gets rejected above the $118,000 level. This is a supply zone, where sellers could unload massive amounts of BTC into the market and beat back the price.

In the second scenario, the price does continue to rally even after hitting the first supply zone. This takes it into the next supply zone just below $120,000, which is currently sitting at $19,700. However, the end remains the same as that of the first scenario, where sellers are likely to dump and send the bitcoin price plummeting again.

How Low Can The Bitcoin Price Go?

As the analyst highlights, the peak of both scenarios aligns with retracement levels where sellers could be waiting to dump. Given this, they both have a similar bottom after crashing. From here, the downside target for both scenarios is placed at the $115,800 target.

This is because this is where previous demand and support had been during the previous retracement/correction. Given this, it is likely that buyers are likely to step back in at this level, making it a possible bottom and the launch point for the next rally.