Bitcoin’s bull run may be at risk as a prominent analyst warns of a potential 50% correction by 2026. With the cryptocurrency breaking a critical trendline, could this signal the start of a major downturn? Let’s dive into the technicals and market sentiment.
Bitcoin Correction Looms as Key Trendline Breaks
Crypto analyst Xanrox has identified a worrying pattern in Bitcoin’s price action. The digital asset has broken a long-term trendline that previously marked cycle tops in 2017 and 2021. Historical data shows:
- 2017: 84% decline after trendline touch
- 2021: 77% decline after trendline touch
- 2025: Current trendline break suggests potential 50% correction
Bitcoin Technical Analysis Points to Bearish Signals
The analysis highlights several concerning indicators:
| Indicator | Signal |
|---|---|
| 1.618 Fibonacci extension | Potential reversal point |
| Rising wedge pattern | Completed Wave 5 |
| 50-week moving average | Critical support level |
Bitcoin Price Prediction: $60,000 by 2026?
Xanrox’s model suggests Bitcoin could fall to approximately $60,000 from current levels near $118,000. This projection considers:
- Historical cycle patterns
- Current market structure
- Seasonal tendencies (August/September weakness)
Contrasting Bitcoin Market Sentiment
While the technical outlook appears bearish, other factors suggest continued strength:
- Strong hold above $118,000
- Bullish altcoin performance
- Institutional interest remains high
Frequently Asked Questions
What triggers a Bitcoin correction?
Corrections typically occur after extended bull runs when technical indicators show overbought conditions and key support levels break.
How reliable are trendline analyses?
While not perfect, trendlines have accurately predicted major Bitcoin tops in previous cycles, though exact timing varies.
Should I sell my Bitcoin now?
Investment decisions should be based on your risk tolerance and time horizon. Consider consulting a financial advisor.
What’s the bullish case for Bitcoin?
Optimists point to strong institutional adoption, ETF inflows, and the upcoming halving event in 2024 as potential price catalysts.
