Experts Issue Dire Warning on Major Bitcoin Price Crash

Key Insights:

• Bitcoin price could crash ahead amid several headwinds, with experts claiming $112,000 as the next support level to watch.
• Several bearish chart patterns emerged for BTC as traders turned cautious after hotter US PPI inflation.
• BTC price pared recent gains and fell 3% to a low of $114,723 on Monday.

Bitcoin price was predicted to hit an all-time high near $135,000 this year, but traders likely turned cautious after recent events. Experts warned about a possible crash ahead, highlighting several headwinds such as technical chart weakness.

Will Bitcoin crash ahead in anticipation of a sudden shift in sentiment among traders?

Matrixport Predicts Bitcoin Price Fall to $112,000

Crypto research firm Matrixport claimed Bitcoin is trapped between $112,000 and $117,000. The firm added that it was not their base case that Bitcoin would fail to hold above the trendline.

The firm predicted Bitcoin price could fall to the $112,000 level as the crypto investors turned cautious ahead of the key Fed rate decision in September.

This year’s Jackson Hole event will not have any impact, considering it more of a discussion forum than a market mover. As per Matrixport, the September 17 FOMC meeting remains the most significant catalyst.

As The Coin Republic reported earlier, traders turned cautious after the US PPI inflation jumped 0.9% in July, raising core PPI inflation to 3.7%.

At the time of writing, the CME FedWatch tool showed nearly 82% probability of a 25 bps Fed rate cut in September. However, traders now expect odds of two rate cuts this year, after the latest hotter PPI inflation.

Bitcoin Price May Crash on Technical Chart Weakness

Bitcoin has formed a swing failure pattern (SFP) in the weekly timeframe, highlighted by crypto trader Mayne. SFP is a reversal pattern indicating potential downtrends.

He added that it happened 15 times over the last 5 years. And out of these, Bitcoin price fell sharply 13 times.

Moreover, bearish technical patterns, such as a double top, emerged on Bitcoin’s 1-day chart. This caused some investors to turn short on a possible reversal in the short term.

Popular analyst Rekt Capital revealed that Bitcoin started similar pullbacks in 2017 and 2021. It could lose $114,000 first under the price discovery correction.

BTC saw a 29% crash in 2017 and a 25% crash in 2021. He expects a shallower and quicker fall in this cycle as compared to previous cycles.

Moreover, Bitcoin had historically printed the same pattern after every halving year. Several analysts predicted Bitcoin to peak by September-end or mid-October.

Crypto analyst BTCfuel claimed Bitcoin’s full 16-year cycle in comparison with the Japanese asset bubble (Nikkei 225) shows a massive crash ahead, with a multi-year bear market.

Bitcoin Centralization Risks

Financial analyst Jacob King pointed out that miner Foundry USA mined 8 blocks consecutively. He claims it is extremely alarming and causing panic among many bitcoiners. The analyst stated:

He argued that blocks are now empty while fees plummeted to 1 sat/vB, claiming it as another massive red flag.

However, Bitcoin adoption by numerous companies in their corporate treasuries could reduce significant centralization risk. But some think a higher percentage of BTC holdings among some companies is concerning.

Bitcoin price tumbled 3% in the past 24 hours, with the price trading at $114,987. The 24-hour low and high were $114,723 and $118,595, respectively.

Furthermore, the trading volume has increased by almost 40% in the last 24 hours, indicating interest among traders.