Crypto analyst predicted 98% Bitcoin price collapse after a significant raise to $250,000. Interestingly, the analyst is confident that Bitcoin will eventually reach this ambitious quarter-million-dollar goal. However, they warn that after making profits at this peak, Bitcoin could fall significantly to modern lows.

Bitcoin price is predicted to drop 98%

On October 30, cryptocurrency analyst Gert van Lagen he said his 106,700 followers on X (formerly Twitter) that Bitcoin’s price could drop to $24,000 once it hits $250,000. Lagen revealed that many investors were overconfident that Bitcoin would never experience a 98% crash again, especially after the launch Spot Bitcoin Exchange Traded Funds (ETFs).

Countering this overconfidence, a cryptocurrency analyst stated this ETF assets they tend to lose significant value during periods of economic recession. As such, the analyst predicts that Bitcoin’s price may first experience a “drop” as high as $250,000, which will be a historic milestone. At this point, many investors would start taking profits, triggering massive gains sales pressure as they liquidate against potential price declines.

According to Lagen’s analysis, when market sentiment regarding Bitcoin price changes, institutional investors, who may have been the main drivers of the $250,000 raise, are likely to sell their shares. Lagen described the massive sell-off as the “shock of the century” where Bitcoin’s price could drop dramatically to 98% of its highest value.

This suggests that once you exceed $250,000, The BTC price may drop to $2,000, which is below the current Ethereum price, which is $2,635 according to CoinMarketCap.

Highlighting the reasoning behind this unexpected price collapse, Lagen revealed that by plotting Bitcoin’s price on the “Syslog scale”, it clearly shows a High-Time Frame (HTF) rising wedge that indicates a price target between $1,000 and $10,000. He too revealed in a much earlier post that if Bitcoin actually experiences the predicted shock and price drop to $1,000, it will take four events by half before the cryptocurrency can return to its all-time high of $200,000.

BTC will break above $73,000 and rise higher

At the time of writing Bitcoin price is trading at $72,433 after rising over 7.8% this week. Lagen has he stated that Bitcoin’s price action indicates a possible “triangular bear continuation pattern,” which typically signals a potential downtrend for the cryptocurrency.

A cryptocurrency analyst has set a modern target of $71,200 for Bitcoin, suggesting that if the cryptocurrency follows a triangular bearish continuation pattern, its the price may drop significantly. On the other hand, Lagen predicted that if Bitcoin can breach the $73,000 threshold, it will invalidate the triangular bearish continuation pattern. This could signal the end of the downtrend and potentially lead to: stronger growth impulse.

Featured image created with Dall.E, chart from Tradingview.com