Bitcoin, trapped in 7 bear flags... Warning of a fall to $50,000

▲ Bear market

Bitcoin (BTC) rebounded to around $82,000, but some analysts warned that the bottom has not yet been confirmed and this rally could be the last bull trap.

According to the cryptocurrency specialized media Bitcoinist on May 7 (local time), crypto analyst CryptoCon analyzed that Bitcoin has not confirmed its bottom despite its recent rebound to around $82,000. He believes that Bitcoin is currently retesting the top of a bear flag, and if this retest fails, it is highly likely to fall again.

CryptoCon pointed out that the dominant pattern in the market is still a bear flag. He explained that now that Bitcoin has reached the top of the channel, it is a typical period when investors start asking whether the bottom has been confirmed. He added that this bear flag has been ongoing for 86 days, and the longest bear flag period since November 2021 was 100 days.

He analyzed that a total of 7 bear flags were formed during that period. CryptoCon explained that a pattern of Bitcoin breaking down after a second significant retest of the channel top has frequently appeared, and the market is currently at the same point. Accordingly, he believes that further declines could occur after the relief rally that reached $82,000.

In a separate post, CryptoCon also argued that the bearish cycle is not yet completely over, based on historical patterns. He believes that a bottom is unlikely to emerge before the end of the year, and analyzed that the Fear & Greed Index returning to neutral is also similar to past cycles. He explained that a short-term cycle is repeating, where investors become bearish after a significant price drop, then the price finds equilibrium, and then neutral and optimistic sentiment returns.

Another crypto analyst, Doctor Profit, diagnosed that Bitcoin is entering the final bull trap phase before a strong decline. He stated that the next decline could start from the current range, and he plans to maintain long positions until Bitcoin reaches between $83,000 and $85,000, then realize profits and start building short positions.

Doctor Profit previously predicted that Bitcoin's bottom is likely to form at the end of this year, and until then, Bitcoin could fall to around $50,000. Bitcoinist reported that at the time of writing, Bitcoin was trading at approximately $80,900 and had shown a decline in the last 24 hours.

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