Bitcoin Has Officially Entered Bearish Territory, And It’s Headed To $35,000; Chart Shows

Overview

Bitcoin has officially entered bearish territory following a significant breakdown of a long-term support level. According to crypto analyst Crypto Patel, this shift in market dynamics suggests a potential for further price corrections, with projections indicating a possible bottom at a much lower price point.

Breakdown of Key Support Level

The recent analysis highlights that Bitcoin’s price has fallen below a crucial higher-timeframe ascending trendline, which was previously acting as dynamic support around $107,000. This trendline had played a vital role in sustaining Bitcoin’s bullish momentum during its rally from 2023 to 2025, where it connected a series of higher lows. The breakdown below this level marks a pivotal moment, as it signifies that Bitcoin has transitioned into bearish territory.

The chart shared by Crypto Patel illustrates this breakdown zone with a red circle, emphasizing the decisive loss of upward support. Following this breach, Bitcoin has exhibited a change in momentum, characterized by the formation of lower highs. Patel asserts that this trendline represented a critical threshold; its loss indicates that Bitcoin’s bullish phase has ended, necessitating a healthy correction before any potential recovery in the future.

Fibonacci Levels and Future Projections

Bitcoin’s price trajectory has been on a downward trend since the beginning of the year, with projections suggesting a potential bottom around $35,000. This forecast is grounded in historical price corrections observed in previous market cycles. For example, the bear market in 2018 saw Bitcoin decline approximately 84% from its peak, while the 2022 correction resulted in a roughly 77% decrease. Both instances were followed by significant rallies, indicating that such deep retracements are not uncommon for Bitcoin.

The analysis employs Fibonacci retracement levels drawn from the peak price observed in October 2025. Two critical levels emerge from this analysis: the 0.5 Fibonacci retracement at around $44,000 and the 0.618 Fibonacci retracement at approximately $35,000. The 0.5 level is particularly noteworthy as it has historically attracted strong buying interest during corrections, potentially serving as a stabilization point if selling pressure diminishes. However, if Bitcoin fails to find support at $44,000, the expectation is that it may ultimately bottom out at the 0.618 level of $35,000.

At the time of the report, Bitcoin was trading at $63,740, reflecting a decline of 6% within the past 24 hours.

From author

The shift in Bitcoin’s market structure signals a critical juncture for traders and investors alike. Understanding the implications of this bearish territory is essential for navigating the current landscape. The historical context provided by previous market cycles offers insights into potential future movements, though the inherent volatility of cryptocurrencies remains a constant factor.

Impact on the crypto market

• The breakdown below the $107,000 support level may lead to increased bearish sentiment among traders.
• A potential decline to $44,000 or $35,000 could trigger further sell-offs as market participants reassess their positions.
• The historical context of previous bear markets may influence investor behavior, leading to cautious trading strategies.
• The focus on Fibonacci retracement levels highlights the technical analysis approach that many traders may adopt in response to the current market conditions.
• Market volatility is likely to persist as traders react to these developments and adjust their strategies accordingly.