Bitcoin currently appears bullish, but a leading cryptocurrency analyst has issued a shocking warning: over 80% of a crash may be imminent. Despite Bitcoin rising 3.3% over the past 30 days, currently trading at $108,161, concerns are brewing beneath the surface.

Cryptocurrency analyst EDO FARINA, who has over 167,000 followers on platform X, believes that Bitcoin's rise has dangerously overheated. In a recent article, he predicted that a sudden sharp correction is not only possible but imminent. He warned that once the correction arrives, it will be swift and severe.

Bitcoin market overheating

The analyst believes that Bitcoin's recent surge is not supported by fundamental factors. Since the shift in U.S. politics in November 2024, Bitcoin has surged nearly 60%. In the second quarter of 2025 alone, Bitcoin's quarterly return rate reached 29.9%, and by July, Bitcoin had risen nearly 1%.

But the economic backdrop tells a completely different story. The U.S. inflation rate has dropped to 2.4%, close to the Federal Reserve's target. However, GDP growth is slowing down - expected to fall to 1.8% by 2025. The labor market is also cooling, with the unemployment rate rising to 4.1% in June, and consumer spending is expected to weaken. Analysts believe this economic environment does not support such a strong rise in Bitcoin.

Missed the Bitcoin boom?

EDO FARINA believes that the best time to buy Bitcoin was several years ago. In 2020, BTC had a return rate of 304.1%, and in 2021, it surged strongly by 59.6%. Although there was a significant correction in 2022, dropping by 64.3%, the market then rebounded strongly - rising 115.4% in 2023 and 121.1% in 2024.

The analyst stated that today's price levels are no longer ideal for those seeking 'safe' long-term returns.

Reportedly, Bitcoin whales are selling off

Another danger signal is the behavior of Bitcoin whales. The analyst claims that large holders, especially those who have held Bitcoin since the Satoshi era, are moving their Bitcoin to exchanges. Whenever the price approaches the critical $110,000 level, it faces strong resistance.

For example, on May 22, BTC reached $111,662. But the next day, the market dropped nearly 4%. On June 10, Bitcoin climbed to $110,266, but fell by over 8% in the following 12 days. A similar trend occurred on July 3, when BTC hit $110,681, but dropped 1.44% the next day.

The repeated sell-offs around the $110,000 mark indicate that whales are actively cashing out, thus preventing Bitcoin from breaking through to new highs.

The real issue: low trading volume

Farina believes that the current low trading volume is more dangerous than whale sell-offs. Compared to previous bull markets, the number of retail investors buying in has decreased. This analyst believes that today's price movements are driven by a few large participants rather than widespread demand.

This poses a serious risk. If whales decide to sell all their holdings at once, there may not be enough buying support to sustain the price. This lack of liquidity could trigger a chain reaction of sell-offs, ultimately leading to a market crash.

Will Bitcoin crash soon?

Farina believes that a stock market crash will be triggered by a significant unforeseen event - commonly referred to as a 'black swan' in financial markets. Once it occurs, the crash will come swiftly and catch most investors off guard.

He concluded that Bitcoin's current high point is artificially inflated and lacks support from actual market activity. Without strong and widespread demand, the price could quickly crash under pressure.

Although Bitcoin's price movements seem bullish, warning signs cannot be ignored. Whale activity, the $110,000 resistance level, weak economic fundamentals, and low trading volume all indicate that this rebound may not be as healthy as it appears. Whether it ultimately leads to a mild correction or a significant crash, investors should remain vigilant.