The Bitcoin price recovery back in May 2026 triggered a renewed wave of bullish optimism. But despite the rising prices, there are some who did not give in to the bullish wave, picking a more conservative stance on the cryptocurrency. With the new month, those who refused to flip bullish look to have come out on top as the Bitcoin price has reversed. However, some analysts are predicting that this might only be the start of the decline.
Bitcoin Price Could Be Getting Ready To Fall To New Cycle Lows
According to crypto analyst Xanrox, the Bitcoin price crash was expected, given that the cryptocurrency has entered one of the most brutal bear markets in recent history. One very bearish development is the fact that the Bitcoin price has now fallen below two major channels.
Related Reading
These channels include a descending channel, which was broken with the fall below $71,000. Then, the other broken channel is an ascending channel, broken at almost the same time as the descending channel. The result of these two channels being broken, the analyst explains, is a double breakdown.
The thing about double breakdowns is that they are extremely bearish and often suggest that the crash is just starting. With the Bitcoin crash already in motion, the crypto analyst expects that the price will continue to go lower.
Despite there being significant support around the $60,000 level, which has served as the psychological support this cycle, the analyst does not believe this level will hold. Instead, they suggest holding off buying as the price is expected to drop to $48,000, with a strong possibility of a crash to the $40,000-$30,000 levels.
What Investors Should Watch Out For
Presently, there is a major outflow happening in the crypto market, and Bitcoin, being the leading cryptocurrency, has taken the highest hit. The bear market has also pushed a significant number of users out as they move toward cash in a market that seems to offer nothing but losses.
Related Reading
Xanrox also suggests that the banks are now controlling the Bitcoin price. According to the post, the banks could push the price down 20% in a single day once they start selling on futures. This would put major stress on investors as retail traders are liquidated en masse.
In this case, losses were expected to be amplified as the market made its final downward move. Nevertheless, there is the possibility that bulls will put up a major fight at $60,000, since it is the cycle’s swing low.
Featured image from Dall.E, chart from TradingView.com
Credit: Source link
