Bitcoin (BTC) has been in a sharp downtrend over the past two weeks, facing steady declines as selling pressure, market volatility, and negative sentiment weigh on its price. During one of its recent market crashes, a crypto analyst noted that BTC had officially broken below a critical four-month support level, leaving the cryptocurrency in a precarious position. The expert now outlines what could happen next, and none of the scenarios suggested point to a fresh bull run—rather, Bitcoin may be headed for an even deeper bear market decline.
Bitcoin Price Crash Breaks Key Support
Crypto market expert Aralez announced in an X post on June 2 that Bitcoin had officially broken a critical four-month support level that had been holding its price steady. The latest decline saw the cryptocurrency lose more than 8% of its value in a single day, falling below $69,000.
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Aralez explained that Bitcoin’s first goal during this bearish phase was to fill the Chicago Mercantile Exchange (CME) gap in the $74,000 – $81,000 range. His accompanying price chart shows that the CME gap was completely filled earlier in May when Bitcoin briefly climbed above $80,000. At the time, the cryptocurrency had been trading within a tight ascending channel, defined by an upper resistance trendline and a lower support line.
This channel had guided BTC’s price up until its latest crash, which saw it break below the pattern’s lower boundary near $70,000. Since crossing $80,000, Bitcoin has entered a rather frightening downtrend, recently crashing below $63,000 after losing the $70,000 support.
At the time of writing, Bitcoin is trading just above $62,000, down more than 2.3% in the past 24 hours and over 15% in the last seven days. Analysts tracking this bearish trend add that further declines could still occur until a bottom forms below $60,000, officially ending the bear phase.
As for Aralez, he noted that a sharp sell-off immediately after hitting upside targets is usually a strong indication that the cryptocurrency’s downside momentum is far from over. As a result, he predicts that Bitcoin’s next move is likely a brief bounce to higher levels before another full-blown price crash to fresh lows.
Analyst Outlines BTC’s Final Bearish Play
In his analysis, Aralez outlined his roadmap for Bitcoin over the next 30 to 60 days. He first predicted that BTC could bounce back to the $71,000-$72,000 range and consolidate there for a bit. Afterward, the analyst expects the cryptocurrency to decline sharply toward lower-liquidity levels of $65,000-$63,000.
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Once that range is reached, Aralez forecasts a brutal sweep below $60,000, suggesting a potential Bitcoin bottom near $55,000. He cautioned investors not to mistake the current market for the start of a new bull run. Instead, he said the market looks more like a classic bull trap that could catch many investors off guard.
He added that the Bitcoin path with the least resistance points to lower levels. As the cryptocurrency continues its decline, he urged traders and investors to avoid becoming exit liquidity.
Featured image from Pngtree, chart from Tradingview.com
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