Bitcoin Price Crash To $25,000: Why The Bottom Is Much Lower

Overview

Recent analyses from crypto experts highlight the potential for Bitcoin’s price to decline significantly, with projections suggesting a possible drop to $25,000. This anticipated decline is viewed as a key moment in the cryptocurrency’s market cycle, indicating a macro bottom before a potential recovery.

Analysis of the Current Situation

Crypto analyst Crypto Whale has provided insights regarding Bitcoin’s price trajectory, emphasizing that the monthly chart could indicate a macro bottom around $25,000, potentially occurring in 2026. The analyst suggests that such deep retracements have historically served as long-term accumulation zones. This assertion implies that the current market conditions do not mark the end of the price cycle but rather a necessary reset before the next phase of expansion.

In a subsequent analysis, Crypto Whale indicated that Bitcoin is not currently in a bear market. Instead, he forecasts a Bitcoin-led rally for the current month, followed by a broader altcoin expansion in February. However, he warns that a bull trap could emerge in March, which may trigger volatility and panic selling among investors.

The predictions continue with a forecast for May, where a capitulation phase is anticipated, leading to a more definitive bear market confirmation by June. This outlook aligns with observations from research firm XWIN Research, which noted that Bitcoin has not established a clear bullish trend. They characterized the current crypto market environment as one of high volatility, lacking a definitive bullish or bearish stance.

Additionally, XWIN Research raised concerns about potential recession risks, suggesting that increased deleveraging and ETF outflows could push Bitcoin’s price below $80,000, with a drop to $50,000 becoming a plausible scenario.

Another analyst, Ali Martinez, highlighted a recurring death cross pattern on Bitcoin’s weekly chart, which has historically led to significant price corrections. This technical indicator, formed by the intersection of the 10-week and 50-week simple moving averages, has preceded substantial declines in previous market cycles. Martinez pointed out that if historical patterns hold, Bitcoin could see a correction of 50% to 60%, potentially dropping to around $38,000.

Martinez also identified the price range between $50,000 and $38,000 as becoming increasingly attractive for long-term spot accumulation, suggesting that investors may find opportunities in this territory as the market evolves.

From author

The current landscape surrounding Bitcoin’s price reflects a complex interplay of market sentiment, technical indicators, and broader economic factors. Analysts are closely watching for signs of a shift in the market, particularly as they evaluate historical patterns that could inform future price movements. The upcoming months could prove critical in determining whether Bitcoin will stabilize or continue its downward trajectory.

Impact on the crypto market

• Analysts predict a potential Bitcoin price drop to $25,000, which could mark a macro bottom before recovery.
• A Bitcoin-led rally is expected this month, with broader altcoin growth anticipated in February.
• A possible bull trap in March may lead to increased volatility and panic selling.
• Concerns about recession risks could influence Bitcoin’s price movements, with potential drops below $80,000.
• Historical patterns from past death crosses suggest significant corrections could occur, impacting investor strategies.
• The price range between $50,000 and $38,000 is being viewed as a potential accumulation zone by some analysts.