A crypto analyst forecasts bitcoin could drop to $54,000–$56,000 before potentially falling further to $40,000–$50,000.
A widely followed crypto analyst warned bitcoin is forming a bear flag pattern, signaling a potential decline to $54,000–$56,000. The pattern, if confirmed, could extend losses to $40,000–$50,000.
The analyst, known for accurately predicting bitcoin’s October all-time high and subsequent selloff, cited a sharp drop followed by a relief bounce as the flag’s formation. Chart patterns remain subjective and can fail amid broader macro pressures.
Bitcoin’s price action follows concerns over Fed policy, rising bond yields, and volatility tied to corporate holders like MicroStrategy. The largest cryptocurrency has struggled to regain momentum after recent declines.