The current Bitcoin price crash is being caused by large-scale selling by large whales releasing large amounts of their initial Bitcoin holdings. But in addition to this, there are also chart formations that suggest that the Bitcoin price crash is only in the early stages. This comes after the cryptocurrency ended October in the red for the first time in seven years, setting a precedent for a bearish end to the year.
Need to maintain high and low trend lines
The current downward trend in Bitcoin prices began after the cryptocurrency hit an all-time high in August. The rejection at $126,000 created a series of bearish pressures currently plaguing the market, resulting in heavy losses for the altcoin. But even though prices have already plummeted since then, the decline is likely far from over.
Crypto analyst TradingShot highlighted that the current trend is similar to the one seen in January-February 2025, with the fractal forming after Bitcoin price broke below its high trend line. Currently, the Bitcoin price chart is following the high-low trend line that formed after the infamous October 10 flash crash.
As analysts explain, this trend line must hold for a recovery to occur. If the trend line breaks, Bitcoin price could find itself in trouble, similar to what we saw at the beginning of the year. If this level is rejected, a double-digit collapse is inevitable.
If the crash remains in the same fractal as seen in January-February, analysts predict a 32% drop could occur. This puts us at the 2.0 Fibonacci extension level, and such a selloff could send it down to $87,000 before support is reestablished.
What a bearish October means for Bitcoin price
Interestingly, past performance also confirms crypto analysts’ theory that a double-digit crash in Bitcoin price is possible. This has to do with October’s performance and the resulting trends that we are told are likely to occur in November.
When the Bitcoin price ends October in the red, it always ends the following November in the negative. The last time Bitcoin saw a red October close was in 2018, followed by a 36.4% crash in November.
Considering this, Bitcoin price is likely to follow this trend, especially with the massive drop from BTC whales. Naturally, a double-digit crash would send Bitcoin prices below $100,000 for the first time in four months.
Featured image from Dall.E, chart from Tradingview.com
