Bitcoin Price Wave Down To $40,000 Shows When The Bottom Will Begin

Overview

A crypto analyst has articulated a bearish outlook for Bitcoin, suggesting that the cryptocurrency is still in a downward trend and may soon experience a significant decline. This analysis includes a wave structure that outlines potential price movements and indicates that Bitcoin has not yet reached its cycle bottom.

Current Market Analysis

According to the analyst, Bitcoin’s price action indicates a continued bear trend, with expectations of a further drop below $40,000. The analyst employs a wave structure, specifically a “Double ZigZag (WXY)” formation, to describe the current market dynamics. This formation tracks Bitcoin’s price movements since its peak in October 2025 and suggests that another major decline may be on the horizon.

The analyst contrasts the current market behavior with previous trading ranges, noting that Bitcoin has spent a more extended period consolidating between $62,000 and $78,000 compared to the shorter duration it traded between $84,000 and $97,000 from November 2025 to January 2026. This prolonged consolidation is interpreted as indicative of an ongoing bearish trend rather than an end to the bear market.

The recent rebound above $78,000 is viewed as part of a larger corrective move rather than a signal of bullish momentum. The analyst anticipates that Bitcoin may experience one final surge towards $85,000, which he sees as a critical resistance level. This surge is linked to his wave structure analysis, which suggests that Bitcoin has completed wave W after reaching a peak above $126,000 and then declining to $60,000.

Wave X is projected to occur after the cryptocurrency rallies above $80,000. The analyst believes that this phase will be followed by wave Y, which is expected to represent the final leg down, potentially leading Bitcoin to its lowest point in this cycle.

From author

The analysis presented reflects a cautious perspective on Bitcoin’s market trajectory. By utilizing a wave structure, the analyst provides a framework for understanding the current trends and potential future movements. This method of analysis is common among market analysts, as it allows them to identify patterns that may precede significant price shifts. The emphasis on consolidation periods and resistance levels underscores the complexity of predicting market behavior in the crypto space.

Impact on the crypto market

• Bitcoin remains firmly in a bear trend, with potential for further declines.
• The analyst’s wave structure suggests a more complex market dynamic than previously anticipated.
• A rebound above $80,000 could precede a sharp downturn, impacting traders’ expectations.
• The potential bottom target of $40,000 indicates a significant risk for bullish traders.
• The analysis highlights the importance of understanding market cycles and price structures in crypto trading.