Bitcoin Nears $108K as Analyst Warns of Potential Drop to $55K

• Bitcoin’s strong rise over the past two years is slowing down as it hovers near $108,000 inside a tightening pattern.

• Analyst Captain Faibik warns Bitcoin could drop to around $55,000 if it falls below its main support level soon.

• Bitcoin’s momentum is fading, and traders may see big price swings ahead if the current trendline fails to hold, with historical data from 2023 and 2024 showing consistent support until now.

Bitcoin price correction looms as momentum fades near $108,000—could it plummet to $55,000? Expert analysis reveals risks for investors. Stay informed and protect your portfolio today.

What Is Causing the Potential Bitcoin Price Correction Near $108,000?

Bitcoin price correction risks are emerging as the cryptocurrency’s long-term uptrend shows signs of exhaustion after two years of steady gains. Trading near $108,000, Bitcoin is compressing within a tightening wedge pattern, with fading bullish momentum and potential breakdowns below key support levels. Analyst Captain Faibik, sharing insights on X, has turned bearish for the midterm, warning that the bull run may be over and late buyers could face significant losses if the rising trendline fails.

Bitcoin’s journey through 2023 and 2024 was marked by higher highs and higher lows, supported by consistent buying pressure during retracements. Official data from market trackers like CoinMarketCap indicates that the asset maintained positions above critical moving averages, such as the Weekly MA50, fueling optimism. However, as of mid-2025, the price action has reached the upper boundary of this pattern, leaving limited room for further upside without a breakout. This compression often precedes volatility, and historical precedents, including past corrections after prolonged uptrends, suggest a 50% or greater pullback is plausible if support gives way.

The broader market context adds to the caution. Institutional adoption and regulatory developments have driven Bitcoin’s value, but recent on-chain metrics from sources like Glassnode reveal declining transaction volumes and reduced holder conviction, pointing to fatigue among long-term holders. Faibik’s analysis aligns with these trends, emphasizing that short-term rebounds may occur but could lead to lower highs, initiating a descending pattern toward the $55,000 zone—a level that represents roughly 52% from current peaks based on the projected chart trajectory.

How Does the Tightening Wedge Pattern Signal a Bitcoin Price Drop?

The tightening wedge pattern in Bitcoin’s price chart is a classic technical formation indicating decelerating momentum after an extended rally. In this setup, price action converges between rising support and resistance lines, creating a narrowing channel that builds pressure for a decisive move. For Bitcoin, this pattern has formed over the past two years, with the asset trading at approximately $108,000 at the time of recent analysis.

Supporting data from technical indicators, such as the Relative Strength Index (RSI), shows overbought conditions easing but not resolving, with readings hovering near 70 on weekly timeframes—per insights from TradingView metrics. Captain Faibik, a seasoned market analyst, detailed on X that a close below the rising trendline could trigger a prolonged retracement into 2026, potentially erasing much of the 2023-2024 gains. Historical statistics from past cycles, including the 2021 bull run, demonstrate that similar wedge breakdowns led to corrections of 40-60%, aligning with the projected drop to $55,000.

Expert quotes reinforce this view: “The bull run is over, and late buyers are likely to get trapped,” Faibik stated, highlighting the risks of chasing highs in a fatiguing market. On-chain data further supports this, with exchange inflows increasing by 15% in recent weeks according to CryptoQuant reports, suggesting profit-taking by whales. Traders should monitor volume spikes and candlestick closes below the trendline for confirmation, as these elements structure the path to either continuation or reversal, making the pattern a reliable harbinger of volatility in Bitcoin’s volatile ecosystem.

Bitcoin’s price near $108,000 is losing strength, and experts warn it could drop sharply if key support levels give way.

• Bitcoin’s strong rise over the past two years is slowing down as it hovers near $108,000 inside a tightening pattern.
• Analyst Captain Faibik warns Bitcoin could drop to around $55,000 if it falls below its main support level soon.
• Bitcoin’s momentum is fading, and traders may see big price swings ahead if the current trendline fails to hold.

Bitcoin’s strong two-year uptrend could be nearing a critical point as market momentum begins to weaken. According to analyst Captain Faibik, Bitcoin’s structure is fading in strength despite holding above key technical levels. He noted on X, “I’m turning Bearish on $BTC for the midterm. However, whenever I see a short-term bullish setup, I’ll continue to share timely updates.” Faibik explained that the Bitcoin bull run is over, adding that “late buyers are likely to get trapped.”

At the time of the chart, the cryptocurrency traded at around $108,000. This long-term pattern has guided Bitcoin’s consistent climb, producing higher highs and higher lows through 2023 and 2024. Moreover, every retracement found support above the previous low, confirming steady buying pressure. However, the wedge’s structure is tightening as price action compresses near its upper boundary.

Momentum Shows Signs of Fatigue

Besides maintaining its position above the Weekly MA50, Bitcoin’s bullish momentum appears to be fading. The convergence of the wedge’s support and resistance levels indicates a slowdown in upward movement. Faibik emphasized that once this line breaks, volatility could rise sharply.

Source: Captain Faibik

Additionally, the chart shared by Faibik outlines a possible 52% correction, projecting a decline toward the $55,000 zone. This scenario features short rebounds followed by lower highs, forming a descending pattern. Hence, if the price closes below the rising trendline, Bitcoin could begin a prolonged retracement phase extending into 2026.

In 2023 and 2024, Bitcoin continued on its upward trend. Several weekly candles ended the day close to resistance. The asset, however, had reached the wedge’s peak region by the middle of 2025, leaving little opportunity for more upward growth. Furthermore, the last line of defense against further losses is currently the long-term trendline.

Market participants should note that macroeconomic factors, such as interest rate expectations from the Federal Reserve, could exacerbate this technical setup. Data from the U.S. Bureau of Economic Analysis shows persistent inflation pressures, which historically correlate with risk-off sentiment in crypto assets. Bitcoin’s correlation with traditional markets, at around 0.6 as per recent Bloomberg analyses, implies that equity downturns could accelerate the correction. Despite these headwinds, the network’s fundamentals remain robust, with hash rate at all-time highs per Cambridge Centre for Alternative Finance reports, underscoring long-term resilience even amid short-term volatility.

Traders are advised to employ risk management strategies, such as stop-loss orders below the trendline, to navigate potential swings. The $108,000 level now acts as immediate resistance, and a failure to reclaim it decisively could validate the bearish thesis. As Bitcoin evolves, understanding these patterns is crucial for informed decision-making in the dynamic cryptocurrency landscape.

Frequently Asked Questions

What Triggers a Bitcoin Price Correction After a Bull Run?

A Bitcoin price correction often follows exhaustion in a bull run when momentum indicators like RSI signal overbought conditions and volume declines, as seen near $108,000. Technical patterns such as tightening wedges, combined with on-chain data showing increased selling pressure, can precipitate drops of 50% or more to levels like $55,000, based on historical cycles from 2017 and 2021.

Is Bitcoin’s Momentum Fade Near $108,000 a Sign of a Larger Market Crash?

Bitcoin’s fading momentum near $108,000 points to a potential midterm correction rather than an immediate crash, according to analysts like Captain Faibik. While a break below key support could lead to volatility and a drop to $55,000, underlying network strength and institutional interest suggest this may be a healthy reset, allowing for future growth phases.

Published: October 2025 | Author: COINOTAG

Key Takeaways

• Watch the Trendline Closely: A close below Bitcoin’s rising trendline near $108,000 could initiate a sharp correction to $55,000, as projected by technical analysis.
• Momentum Exhaustion Signals Risk: Fading bullish indicators, supported by declining on-chain volumes, highlight vulnerabilities after two years of gains in 2023-2024.
• Prepare for Volatility: Investors should implement risk controls and monitor macroeconomic cues to navigate potential swings extending into 2026.

Conclusion

As Bitcoin’s price correction risks intensify near $108,000 amid a tightening wedge and waning momentum, the insights from analyst Captain Faibik underscore the need for caution in this evolving market. With historical data from 2023 and 2024 affirming the uptrend’s strength until now, a potential drop to $55,000 could reset the landscape for renewed opportunities. Stay vigilant with technical levels and broader economic signals—positioning wisely today will be key to capitalizing on Bitcoin’s long-term potential in 2025 and beyond.