The Descending Channel That Can Trigger A Bitcoin Price Crash To $88,000

Overview

Recent analysis indicates that Bitcoin may face significant downward pressure following a recent crash. Analysts note a descending trend pattern that suggests a higher likelihood of further declines in Bitcoin’s price, raising concerns among investors.

Market Analysis

In the weeks following an initial crash on October 10, market trends have shown signs of weakness, indicating that Bitcoin is currently favoring a downtrend. Analysts, including Lixing_Gan from the TradingView platform, have observed a descending trend pattern that reinforces the expectation of a price drop rather than a recovery.

Despite Bitcoin maintaining its position above the psychological level of $100,000, it has experienced fluctuations within a narrow trading range of $101,000 to $105,000. This limited movement, coupled with the descending trend pattern, suggests a potential path downward for the cryptocurrency.

The formation of this descending pattern began earlier in October, prior to the notable crash. This indicates that the bearish trend was already in motion, exacerbated by a weakening of bullish positions across the market. Significant selling pressure has been observed, particularly among long-term holders, who have sold over 390,000 BTC in recent months. Such sell-offs have contributed to the downward pressure on Bitcoin’s price.

The analyst believes that these sell-offs represent a distribution phase, where long-term holders are transferring their holdings to newer investors. This process is expected to raise the cost basis for Bitcoin, potentially encouraging buyers to hold their assets for longer periods.

Currently, Bitcoin is testing the upper bound of the descending trendline, which is around $106,500. This level has been identified as a major resistance point. Additionally, the Ichimoku cloud analysis indicates an increase in bearish pressure, placing the $100,000 psychological level at risk of being breached. Should this level falter, further declines could ensue, with the first major support identified at $93,000. A breakdown below this support could lead to prices dropping as low as $88,000.

Impact on the crypto market

• Analysts predict continued bearish trends for Bitcoin, raising concerns among investors.
• The narrow trading range indicates a lack of significant upward momentum.
• Long-term holders selling off BTC contributes to increased selling pressure.
• Major resistance at $106,500 could impact future price movements.
• The risk of breaching the $100,000 psychological level could deepen the current decline.
• Potential support levels suggest that significant price drops may occur if downward trends continue.

Updated: 11/14/2025, 9:26:26 AM