Bitcoin (BTC) experienced a slight rebound after reaching a near eight-month low of $87,500 on Wednesday. By Thursday, the leading crypto surged back toward $90,000. However, market expert Leshka warns that this brief increase may signal only the start of a new distribution phase for Bitcoin, as selling pressure continues to build.
She suggested that these levels might represent the bottom for Bitcoin during the anticipated bear market. If such forecasts materialize, this could indicate price drops of 47% to 54% from current values.
Historically, this indicator has been a reliable predictor of price corrections, with past occurrences resulting in drops of 78% and 32%. A median correction based on these previous downturns would indicate a possible price target of $40,000, aligning with Leshka’s forecasts for Bitcoin.
Technical analysis from Crypto Feras also contributes to this bearish sentiment. He pointed out that Bitcoin has breached its 50-day moving average (MA50) placed above $102,000, suggesting that a period of reflection is in order.
The analyst noted that this potential rally usually lasts for two to five weeks and may see both Bitcoin and altcoins behave positively, even though investors might misinterpret it as a return to a bull market.
He also addressed the question of when the market might shift back into “bull mode.” According to Feras, Bitcoin will remain in a bear market as long as it trades below its weekly MA50.
Featured image from DALL-E, chart from TradingView.com
