Many analysts perceive Bitcoin’s recovery as a potential trap for bulls, expressing concern that its price may drop to around $40,000 in the forthcoming months. Key insights include:

• Analysts are skeptical about Bitcoin’s rise, suggesting it could reach $40,000.
• Trends show a possible rally towards $97,000 before a correction occurs.

BTC/USD daily chart. Source: TradingView

Bitcoin has increased by 14.50% from its recent lows of $80,600, striving to hit $93,000 as traders debate whether a bull wave is imminent or if a new bear market is on the horizon.

Many respected figures, including CryptoBirb, assert that the ongoing price movement is merely a selling opportunity rather than a precursor to any significant year-end rise beyond $150,000.

Bearish Patterns Indicate Potential Downturn

A notable technical formation called the ‘bear flag’ suggests further price declines may follow. Analysts, including Mister Crypto and Celeb Franzen, recognize this bearish signal during Bitcoin’s recovery phase, predicting that the price could easily fall back to $80,000.

Source

Their analysis projects a price target of approximately $77,100 by December. This target results from combining the previous downtrend’s height and a probable breakdown point at $88,000 support.

2021 Trend Suggests Possible Repeat

Analyst Leshka noted that Bitcoin’s current trajectory closely resembles that of the 2021 cycle, potentially foreshadowing a significant drop to $40,000 by early 2026 if these patterns repeat. Similarly, analyst Alex Wacy corroborated this viewpoint, warning of substantial corrections following past trends.

BTC/USDT weekly chart. Source: TradingView

Fear in the Market

Data revealed that searches for ‘Bitcoin bear market’ peaked recently, emphasizing a widespread apprehension among traders, as pointed out by AndrewBTC through Google Trends, echoing historical trends leading to market sell-offs.

BTC/USDT weekly chart. Source: TradingView

While imminent rallies could occur, AndrewBTC warns that such movements may merely be deceptive traps for bullish sentiment.