Major Bitcoin Price Collapse Predicted

Major cryptocurrency Bitcoin (BTC) may be on the verge of a substantial price collapse, according to the popular technical analysis indicator Bollinger Bands.

Represented by the 20-day moving average and deviations from it—one up and one down—the indicator forms a price range that helps investors estimate current market bias, indicating whether the asset is oversold or overbought.

For Bitcoin, the Bollinger Bands present a grim outlook. Following recent price fluctuations, Bitcoin has found itself below the middle band on the daily price chart. If the daily candle closes in this position, the likelihood of falling to the lower band increases, suggesting a nearly 7% drop from current levels, which are just below $78,000.

Bitcoin (BTC) Price Scenarios

Should Bitcoin manage to rise above the 20-day moving average, it would signal strong bullish sentiment among traders and potentially shift the bias toward the upper band, currently at $92,150—nearly a 10% increase.

However, it’s important not to overlook the complexities of market movements, as history shows that they rarely occur in isolation. Factors such as market sentiment, macroeconomic conditions, and liquidity levels all play crucial roles.

Unexpected events like short squeezes, significant news, or an increase in retail buying could push Bitcoin back above the middle band, thereby invalidating a bearish outlook.

Conversely, should BTC fall below the lower band, it may lead to an aggressive downturn, triggering a rush among leveraged traders to cover their positions, creating a cascade of liquidations.