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After an earlier prediction of the Bitcoin flash crash to $94,000, a crypto analyst has set a new target for the pioneering cryptocurrency. The analyst expects that another major drop in the Bitcoin price is coming reached a new all-time record.
$130,000 Target in Sight After Bitcoin Flash Crash
The broader crypto market has undergone a significant correction, fueled by the recent Bitcoin flash crash. Over the past week, the price of Bitcoin has risen lost $3,000 in less than 30 minutes, then dropped from $97,000 to $94,000 before quickly rising back above $97,000. This unexpected flash crash was triggered large-scale liquidationswith more than $1.5 billion in long and short positions wiped out as traders scrambled to cut losses.
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With Bitcoin currently showing signs of momentumAnalysts have expressed their expectations about a future price rally. Notably, a Crypto analyst from TradingView, identified as ‘Setupsfx’, shared a detailed price chart predicting Bitcoin’s future movements and next goal.
The analyst accurately predicted Bitcoin’s flash crash to $94,000 and has now expanded his predictions to include a possible recovery phase. According to its latest analysis, Bitcoin is expected to find strong support the $96,000 level following a short-term price correction for this key zone. This new support level is seen as a healthy retracement to build momentum for an upward move.
The analyst’s chart shows a accumulation phase on the left, where prices appear to move sideways, forming strong lows and filling the Fair Value Gaps (FVG). Furthermore, order blocks and Breaks of Structure (BOS) can be identified on the Bitcoin price chart.
According to the chart, Bitcoin price successfully broke out of the aforementioned accumulation zone and started a rally leading to an ATH above $100,000. This bullish momentum matches the hype of the US presidential electionwhich fueled Bitcoin’s rise to a new all-time high.
With this in mind, the analyst predicts that Bitcoin will experience this another withdrawallikely testing the $96,000 zone before a price reversal. This reversal is expected to spark another rally, potentially pushing Bitcoin towards a new target of $130,000.
Update on BTC price action
At the time of writing, the Bitcoin price is trading at $97,223, after falling more than 2% in the past 24 hours, according to CoinMarketCap. The cryptocurrency was trading below the $100,000 level after a slight pullback after reaching a ATH above $104,000.
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The broader market sentiment has also turned bullish despite Bitcoin’s recent price drop. Notably, Bitcoin trading volume has increased by 99% in the past 24 hours and its market capitalization is approaching the $2 trillion milestone.
Commenting on Bitcoin’s price action, crypto analyst Jelle said revealed that Bitcoin’s current price action closely matches the bullish behavior during the ATH breakout in 2020. Based on these similar price movements, the analyst predicts that Bitcoin could see another breakout soon if it maintains this bullish momentum.
Featured image created with Dall.E, chart from Tradingview.com
