A crypto analyst argues maximum pain for Bitcoin this cycle will be a fall to $55,000, based on technical indicators — rather than $35,000 as some predict.
As low as $35,000 predicted By some estimates, a return of 72% would be required.
This has been done before. Bitcoin’s price fell 77% in a single year, falling from $69,000 at the end of November 2021 down to $15.500 one year later.
The analyst “Sykodelic” On Tuesday, he told his 62,000 X-followers that the predictions for a Bitcoin drop to $35,000. in 2026 are not accurate. “absolute rubbish.”
“For Bitcoin to retrace 75% it actually has to fully expand, and this cycle, it just did not do that,” He saidExplaining that these kinds of retraces are only possible because the level of expansion — indicated by relative strength index (RSI) — “makes that level of contraction possible.”
BitcoinBTCIt is down by 31% from the peak reached in October, when it was $126,000. This is normal even for bull markets.
Bollinger Bands can be used to determine a level.
Bitcoin prices Have never been below Bollinger Bands The analyst stated that the analysis was based on a monthly basis.
The cycle was compared to 2017 which had huge gains. However, the retracement still did not cross below the lower Bollinger Band monthly. Why would the market have the biggest contraction after experiencing the weakest growth ever?
“Basically, absolute worst-case scenario and if this is a big bad bear… if we close this monthly candle below the mid line, then we could be expecting a maximum bottom of $55k.”
Some analysts claim that the Bitcoin correction will not be as deep.
Jeff Ko is the chief analyst at CoinEx and told Cointelegraph that a correction of $55,000 or more was not likely. “the bear-case scenario would see Bitcoin revisiting the $65,000 to $68,000 levels.”
Bitcoin, he said, is now more institutionalized than the conventional four-year structure. “I do not expect another 70%–80% drawdown from all-time highs.”
Related: This indicator suggests we’re out of the Bitcoin bull market
“Market depth, ETF participation, and a structurally broader investor base all suggest that future corrections will be shallower and more orderly compared to previous cycles.”
Catastrophic decline if support zone breaks
Augustine Fan is the Head of Insights at SignalPlus. He was also bearish on the crypto market. “significant support area around the $72,000 to $75,000” breaks down.
“A break below will likely lead to catastrophic stops with unknown consequences for now, given the amount of DAT stop selling, impact on Strategy’s position, and viability given their significant implied losses,” Cointelegraph reported that he said this.
Bitcoin is currently trading at around $87,000, a slight recovery from its previous low. fall On Monday, the company earned $84,000.
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Source: cointelegraph.com
