Analyst Predicts Bitcoin Will Drop to $40,000 Before Renewed Uptrend Begins

Bitcoin’s price is expected to undergo a sharp drop to approximately $40,000, according to market analyst Kabuki, who has accurately predicted previous Bitcoin market peaks and bottoms. Despite recent rebounds, Kabuki describes these moves as bull traps within a broader bearish trend that suggests further losses are imminent before the cryptocurrency can recover.

The analyst outlined a clear downward trajectory starting from Bitcoin’s current price near $79,000. Kabuki forecasts an initial decline to about $61,000, followed by a further drop toward $47,000, representing a significant markdown from present levels. He anticipates a brief rebound to roughly $55,000 after this plunge, but stresses that this will be a temporary recovery before the final leg down to $41,000 materializes.

Kabuki’s analysis highlights a classic zigzag price pattern signaling the approach of a cycle bottom. The recent price rally above $82,000, quickly rejected afterward, registers as a bull trap that echoes past bearish cycles. He projects the steepest decline will unfold around June next year, when Bitcoin hits the critical bottom near $40,000.

Backing his forecast, Kabuki points to his strong track record, having predicted Bitcoin’s peak above $126,000 as well as its deep correction to $15,000. His commentary underscores persistent weakness in Bitcoin’s price structure, casting doubt on the sustainability of short-term gains amid the ongoing bear market.

Supporting the outlook for further downside, another analyst, Chiefys, recently described Bitcoin’s current rally as the longest and final bull trap within this bear market cycle. Chiefys warned of an imminent correction possibly starting within days, with Bitcoin sliding toward $51,000 over a near-term timeframe of less than two weeks.

This outlook challenges optimism around Bitcoin’s recent upward moves, highlighting the volatility and uneven momentum typical in the cryptocurrency’s market cycles. Investors should expect a protracted period of price declines before a meaningful recovery can take shape.