Bitcoin Faces Major Crash Warning as Experts Highlight BTC Risks

Bitcoin's Current Positioning in the Cryptocurrency Market

A cryptocurrency trading expert warns that Bitcoin (BTC) might be on the brink of a major crash following a deceptive rally. Currently, Bitcoin is struggling to reclaim its previous record high as it consolidates below the $70,000 resistance.

Warning Signs from Technical Analysis

• Alan Santana observes that Bitcoin has shown a rare pattern of five consecutive red days, a phenomenon that hasn't occurred since May 2023.
• This pattern, referred to as a rounded top or inverted cup, often indicates a bearish reversal.

Critical Support Levels to Watch

As Bitcoin approaches a critical support level near $69,000, a breakdown could validate a bearish trend, potentially driving BTC towards $40,000.

Bearish Market Sentiment

Recent sentiments suggest that the market may be shifting bearish, with notable analysts like Ali Martinez indicating that Bitcoin's momentum is weakening.

Investors Advised to Stay Vigilant

Investors should monitor Bitcoin's weekly close closely—especially a close below the neckline support at $68,000—as it could trigger declines. Although bullish movements are not entirely off the table, signs suggest that a crash could indeed be on the horizon.

Despite the currently bearish outlook, there is still some optimism for Bitcoin's potential, especially with significant upcoming catalysts like the presidential election.