Fair Value Gap Signals Bitcoin’s Next Surge – But This Looming Crash Could Wipe Out Gains

Bitcoin's fair value gap screams bullish momentum—yet seasoned traders know better than to ignore the warning signs flashing red.

The Setup

Market indicators point toward undervaluation, suggesting Bitcoin's primed for another leg up. Technical analysts spot the gap between current price and fair value, fueling optimism among crypto maximalists.

The Catch

Hidden beneath the surface—liquidity crunches and overleveraged positions threaten a violent correction. One major whale dumping coins could trigger cascading liquidations across exchanges.

Wall Street's 'Crypto Experts'

Meanwhile, traditional finance pundits who couldn't spot a blockchain if it hit them suddenly become technical analysts—just in time to miss the crash they helped create with their leveraged ETF products.

Timing beats guessing every time. Watch the charts, not the hype.

Filling The Fair Value Gap At $114,000

Crypto analyst Xanrox revealed that the first Bitcoin Fair Value Gap (FVG) opened up right above $114,000 following the last crash. This gap left a hole for liquidity that could attract more buy-ins to trigger another run. This fair value gap is also sitting above the Head and Shoulders pattern that has formed on the chart.

With the gap still open and more likely to be filled, it suggests that the bitcoin price could see a first initial run-up from here. This would take it all the way up to $114,000, and this is where the real problem comes in. This is because there is a lot of resistance building up above the fair value gap that could be triggered once the liquidity is sucked dry.

Xanrox further explains that many traders have placed their stop loss orders above $114,000, which also adds to the mounting pressure at this level. Thus, whales will use this opportunity to take out all of the liquidity before they start to push the bitcoin price back down.

Bitcoin Price On The Edge Of A Crash

Once the fair value gap is filled at $114,000, then there is the next phase of the trend, which is more bearish. In the post, the crypto analyst predicts that the price will begin another dump. This will be triggered by the lack of liquidity and the completion of the Head and Shoulders pattern.

The crash is expected to go deeper than the current local low from August, plummeting below the support at $108,000. The more than 10% crash after filling the fair value gap is expected to push Bitcoin back down as low as $106,000 before finding a bottom.

Xanrox expects all of this to play out this month, citing multiple factors for this. “We may see a huge dump because it’s September and it’s statistically the worst performing month for Bitcoin and also for the stock market,” the analyst stated.