Analyst Predicts Bitcoin Price Breakdown — Here’s the Best Time to Buy

Summary: Despite Bitcoin trading near its all-time highs, crypto analyst Xanrox warns of an impending price correction. Identifying recent moves as a potential bull trap, the analyst highlights the key level where investors may find the best buying opportunity.

Background: Bitcoin’s Uptrend Sparks Bull Trap Concerns

Bitcoin has surged in recent months, briefly exceeding $110,000 before pulling back. While this rally initially signaled strong momentum, crypto analyst Xanrox cautions that the move may be a classic “bull trap” — a false breakout that lures investors into long positions before a sharp decline.

Xanrox’s analysis points to Bitcoin’s failure to maintain its uptrend after escaping a descending channel pattern. Instead, the price reversed, suggesting manipulation to create liquidity for larger market players. This scenario could lead to a deeper correction, triggering a wave of stop-loss orders and selling pressure.

Market Impact: Liquidity Grabs May Drive Prices Lower

The analyst argues that whales now aim to capture liquidity by triggering a correction. They may push Bitcoin toward the 0.618 Fibonacci retracement level — commonly seen during such reversals — which sits just below $103,000.

This anticipated move could be a temporary downturn, flushing out over-leveraged long positions before the next bullish phase begins. Xanrox notes that several key liquidity areas, including an unfilled Fair Value Gap between $102,000 and $104,000, remain vulnerable during the retracement.

Forecast: Best Entry Point According to Elliot Wave Theory

Leveraging the Elliot Wave Theory, Xanrox outlines a broader bullish trend despite the short-term bearish scenario. According to his view, Wave 1 of the cycle has completed, and the current correction marks Wave 2, typically an ABC pattern.

The optimal buy zone, he suggests, lies at approximately $102,909 — the 0.618 Fibonacci level — aligning with historical support levels. This stage presents a potential accumulation point ahead of the expected Wave 3, which could drive Bitcoin into a stronger bullish trajectory and toward new highs.

Price Update

At the time of writing, Bitcoin is trading just above $107,000, down slightly from last week’s high. Investors are closely watching the $103,000 support region, as a break below could confirm the start of a deeper corrective phase before any resumed uptrend.