The analyst also pointed to the 1-week 200 moving average at the lower support region and the 1-month 350 moving average below it, suggesting that a breakdown could force BTC through multiple long-term trend levels before finding a stronger base.
This is exactly like the 2022 bear market. In the previous bear cycle, Bitcoin did not fall in a straight line. It produced relief rallies that looked convincing enough to pull traders back in, only for the price to roll over again.
The next move in the sequence, a crash to $50,000, would represent a decline of approximately 39% from current levels. The subsequent bounce to $63,000 would restore confidence briefly before the final descent to $42,000 completes the pattern. This final descent will translate to an almost 50% crash from current levels.
At the time of writing, Bitcoin is trading at $80,367.
Featured image from Unsplash, chart from TradingView
