A renowned crypto analyst has predicted a dramatic 98% crash in Bitcoin’s price following a formidable rally to $250,000. Despite the foreboding forecast, the analyst remains confident that Bitcoin will indeed achieve this ambitious quarter-million-dollar milestone. However, caution is advised, as the surge to this peak could be followed by a significant plummet to unprecedented lows.
On October 30, crypto analyst Gert van Lagen shared with his 106,700 followers on X (formerly Twitter) his prediction that Bitcoin could drop to around $24,000 after reaching $250,000. Lagen highlighted that many investors have grown overconfident, believing that Bitcoin is immune to a 98% crash, especially with the advent of Spot Bitcoin Exchange Traded Funds (ETFs).
Challenging this overconfidence, Lagen pointed out that ETF assets typically lose considerable value during economic recessions. He predicts Bitcoin will first experience a “blowoff” rally to $250,000—a historic peak. At this juncture, a wave of profit-taking is expected, with investors liquidating their holdings ahead of anticipated price drops, fueling massive selling pressure.
Following Lagen’s analysis, a shift in market sentiment could prompt institutional investors, who likely spearheaded the $250,000 rally, to offload their Bitcoin holdings. Lagen has described this potential massive sell-off as the “shake out of the century,” with Bitcoin’s price plummeting dramatically, potentially crashing to as low as $2,000—well below Ethereum’s current trading price of $2,635 on CoinMarketCap.
Lagen’s analysis hinges on plotting Bitcoin’s price using the “Syslog scale,” which indicates a High-Time Frame (HTF) rising wedge, pointing to a price target between $1,000 and $10,000. In earlier posts, Lagen suggested that should Bitcoin’s price fall to $1,000, it could take four halving events before the cryptocurrency might return to its $200,000 high.
As of now, Bitcoin is trading at $72,433, having seen a 7.8% increase this week. Lagen noted that the price action suggests a possible “triangle bearish continuation pattern,” typically signaling a downward trend.
The analyst has set a new target of $71,200 for Bitcoin, implying that if the cryptocurrency follows the bearish continuation pattern, its price might decline significantly. Conversely, if Bitcoin breaks above the $73,000 threshold, it could invalidate the bearish pattern, potentially ending the downtrend and leading to a stronger upward momentum.
Bitcoin remains volatile and unpredictable, its market behavior closely watched by investors, eager to gauge its next move.
