Bitcoin prices are now seen losing momentum as several crypto analysts have begun to warn of the possibility of a major decline in the near future.
At the time of writing, Bitcoin prices are at $81,449, down 0.03% since it opened early Tuesday in Asian trading.
An analyst known as AlejandroBTC on the X platform described the current price movement as a ‘dead cat bounce’, a situation where prices rise briefly after a major drop before resuming a downward trend.
According to him, Bitcoin’s rise above $82,000 may actually be a temporary peak for this cycle.
If the prediction comes true, he expects Bitcoin to fall by up to 50%, with a target of around $40,000.
However, he sees the level as an important area that has the potential to become a ‘solid footing’ for the formation of a new market base.
Another analyst, CryptoCon, also views the current situation based on the history of Bitcoin’s previous bear market.
He said that on average, a Bitcoin bear market lasts for 391 days.
Based on his calculations, the market is currently in its 216th day, or around 55% of the entire bear market cycle.
He also explained that the biggest drop so far is only around 52%, which is still smaller than the drop in previous bear cycles.
This means that if history repeats itself, there is still room for Bitcoin to fall lower before reaching its true bottom.
The bearish view is also supported by CryptoRover who believes that this week could be the ‘peak Bitcoin’.
He referred to historical patterns in 2014, 2018 and 2022, which each saw a large drop after a similar market situation.
CryptoRover also listed three main factors that could pressure the crypto market.
Among them is a large spike in ‘open interest’ (OI), which is often a sign of the risk of a massive liquidation when too many traders use high leverage.
In addition, he also paid attention to the possible appointment of a new Federal Reserve chairman this week, which historically has often been followed by pressure on Bitcoin.
The third factor is the US stock market, which is seen as too 'hot' after its recent sharp rise.
According to him, if stocks start to make a price correction, the crypto market, which is still weak compared to stocks, could potentially receive greater selling pressure.
