Bitcoin Price Could Crash to $31,000, Strategists Warn — Worst-Case Scenario Signals Another 55% Drop
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Key Takeaways
Bitcoin’s price has fallen from $116,885 to $111,682 in three days, triggered by a $2.59 billion sell-off.
BTC is trading inside a descending channel, below the Ichimoku Cloud, and has formed a death cross.
Analysis shows that the price could fall toward $105,400 or even $93,571 if bearish momentum continues.
Bitcoin (BTC) has seen spectacular rises and gut-wrenching drops before, but this fall to $111,000 carries a different weight.
Not long ago, Bitcoin’s price seemed destined to begin its run toward $150,000.
Then, the weekend happened. Within the past three days, Bitcoin’s price has fallen from $116,885 to $111,682.
This decline has exposed the flagship cryptocurrency to an extended decline.
In this analysis, CCN reveals what led to the price fall and what lies ahead for BTC in the short term.
Bitcoin Nosedives
According to data from Coinglass, Bitcoin’s flash crash triggered liquidations of more than $30 million in open positions, leaving overleveraged traders in losses.
CCN’s findings suggest that one factor behind Bitcoin’s decline was a massive sell-off by a long-term holder.
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Now valued at $11.4 billion, the trader deposited $2.59 billion worth of BTC into Hyperliquid to sell. Interestingly, a large portion of the proceeds was used to buy Ethereum (ETH) and open long positions.
Following the development, the 4-hour chart shows that Bitcoin’s price continued to trade in a descending channel.
At the same time, the Awesome Oscillator (AO) has sunk deep into negative territory, confirming that sellers remain in control.
A closer look at the chart also reveals that BTC has slipped below the Ichimoku Cloud. This move signals weakness in both trend and momentum.
As long as Bitcoin’s price remains beneath the cloud, it risks falling below support at $108,310 and resistance at $116,930.
Dominance Drops to January Lows
Beyond the price chart, Bitcoin’s dominance (BTC.D) has dropped to 58.21%, its lowest level since January. This decline signals that altcoins are gaining relative strength against BTC.
Adding to the bearish picture, the Exponential Moving Averages (EMA) on the daily chart have formed a death cross, with the 20 EMA (blue) sliding below the 26 EMA (orange) on the daily chart.
Should BTC.D fail to break above the support breached, the coin’s price might continue falling as stated earlier.
At the same time, the Relative Strength Index (RSI) has slipped below the 50.00 mark, confirming weakening buying strength and tilting momentum in favor of the bears.
Since BTC has broken below the rising trendline, its market value could decline by $105,400 at the 0.618 golden pocket ratio.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
