Bitcoin price forecasts tap sub-$50K levels as BTC copies old bear markets

The recent volatility in the cryptocurrency market has intensified bearish sentiment, pushing leading digital asset Bitcoin (BTC) towards critical support levels. Analyst predictions are increasingly pointing toward a potential retracement into the sub-$50,000 range, driven by macroeconomic headwinds and historical cyclical analysis suggesting BTC is mirroring previous bear market patterns.

Following the all-time high near $69,000 in November, Bitcoin has struggled to maintain upward momentum. The sharp sell-off observed in late 2021 and early 2022 is largely attributed to the Federal Reserve’s shift towards monetary tightening, increasing inflation fears, and a reduction in risk appetite among institutional investors who typically flock to safer assets during periods of uncertainty.

Technical analysts are drawing specific parallels between the current market structure and the cyclical downturns observed in 2014-2015 and 2018-2019. In past cycles, significant drawdowns often involved a decisive breach of major long-term moving averages, followed by months of consolidation known as ‘capitulation.’ The current price action shows sustained downward pressure characteristic of these multi-month clearing phases, where overleveraged positions are liquidated and ‘weak hands’ are flushed out.

Critically, the $50,000 mark is now viewed by a host of market strategists not as strong support, but as a likely intermediate resistance point following further dips. Key support levels being monitored are situated between $40,000 and $45,000. If BTC fails to hold the crucial technical level just above $52,000, projections suggest a rapid descent toward the low $40,000s. This movement would be consistent with the 30-40% correction often seen after significant tops in previous bull market cycles, confirming a deep cyclical retrace.

While the short-term outlook remains cautious and volatility is expected to persist, the historical comparisons that predict a deeper correction also imply that such periods of consolidation lay the groundwork for the next major upward move. Investors are currently watching closely to see if Bitcoin can establish a stable floor near the $40K boundary, which would confirm whether the market is entering a prolonged crypto winter or merely enduring a necessary cyclical correction before the next halving event.

Source: Bitcoin price forecasts tap sub-$50K levels as BTC copies old bear markets