Despite current bearish sentiment, experts see Bitcoin’s (BTC) short-term crash as a temporary setback, with the asset poised for further gains.
With Bitcoin nearing the $110,000 support level, analysts believe it could be headed for a blow-off top, a rapid, steep price surge driven by frenzied buying, typically followed by a sharp correction.
Specifically, in an X post on October 11, Glassnode co-founders Jan Happel and Yann Alleman, who use the pseudonym Negentropic, noted that the flash crash highlights Bitcoin’s resilience.
Their outlook pointed to a short-term breakdown at $118,000 but emphasized that this event is only a temporary bump in the road. They predict that volatility will persist over the coming days, but prices are likely to climb higher by the end of the month.
Clearing the way for blow-off top
On the other hand, macroeconomist Henrik Zeberg echoed this view, describing the crash as a clearing mechanism that could set the stage for a blow-off top.
He warned that investor FOMO (fear of missing out) may drive a surge in buying, creating a dynamic that could push Bitcoin even higher before a market correction occurs.
Overall, experts recommend long-term strategies, such as dollar-cost averaging (DCA), to navigate the turbulence.
This outlook comes after Bitcoin led the cryptocurrency market in wiping out over $400 billion in 24 hours as investors reacted to a new trade war escalation between the United States and China.
Notably, after appearing to make progress, both countries are now considering new retaliatory tariffs, which have spooked investors.
Bitcoin price analysis
By press time, Bitcoin was trading at $111,683, having crashed over 8% in the past 24 hours, while on the weekly timeline, the asset has plunged 8.6%.
Bitcoin seven-day price chart. Source: FinboldAs things stand, bulls need to step in to help Bitcoin maintain the $110,000 support level for room to reclaim the $115,000 resistance zone.
Featured image via Shutterstock
Source: https://finbold.com/bitcoin-set-for-blow-off-top-after-devastating-crash-experts-predict/
