Is The Bitcoin Bull Market Over? Analyst Reveals Bear Case That Could Send Price To $28,000

Speculations about the Bitcoin bull market being over have been rife in the crypto market, particularly as the price has failed to reach its March all-time high of above $73,000. Providing a more compelling case to this narrative, a crypto analyst has released a Bitcoin bear case scenario that could see the pioneer cryptocurrency decline to $28,000. 

Bitcoin Bear Case Unveiled

In an X (formerly Twitter) post, crypto analyst and Position trader Bob Loukas revealed a “Bitcoin bear case,” unveiling a more unorthodox and bearish scenario for Bitcoin than most analysts have suggested. Basing his bearish scenarios on the cycle theory, Loukas proposes that Bitcoin might be part of the broader 16-year cycle, with the current market marking the final four-year phase of this cycle. 

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The analyst suggested that this four-year phase could end in two ways — a distribution phase, where prices peak and then decline, or an upward phase, where Bitcoin experiences one last upsurge before a downturn begins. Loukas has revealed that while cycle trends can help predict or provide insights into a cryptocurrency’s future price movements, he emphasizes that “no power law” guarantees that an asset’s price will continually go up. 

The analyst aims to desensitize investors into believing Bitcoin will forever be bullish with no downturns. He asserts that a bear cycle is inevitable at some point, though the timing remains uncertain. 

Loukas pinpointed specific price movements in his Bitcoin chart that could serve as a bearish signal, suggesting a potential downturn. The analyst predicts that Bitcoin could drop to new lows around $28,500 by 2026. He also forecasted that after a period of volatility consisting of price declines and surges, the cryptocurrency could rise again to $59,500 by 2027. 

For more clarity, Loukas has proposed a narrative, suggesting that if Bitcoin were to close below the 10-month Moving Average (MA) during a “bull market,” it would be a cause for concern. Similarly, a monthly close below the $58,800 mark could indicate the start of a potential downward spiral. 

The crypto analyst has estimated a 10% to 15% chance of this bearish scenario occurring, emphasizing that it was a possibility and not a certainty. He clarified that while he believes the current market cycle leans towards a more bullish scenario based on historical evidence, he always considers alternative scenarios. This approach is likely due to the crypto market’s inherent unpredictability and notorious volatility. 

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Analyst Sees Retail Activity Fueling A BTC Downtrend

While unveiling his Bitcoin bear case scenario, Loukas disclosed that broader interest in cryptocurrencies outside of Bitcoin has faded significantly. He revealed that there is a lack of new retail investors, and this weakening enthusiasm could pose a serious challenge for Bitcoin to generate new capital for growth. 

According to Loukas, retail investors’ disinterest may stem from a shift in sentiment. Embracing cryptocurrencies has dwindled to mere speculation, and fewer people believe in their transformative potential. 

Featured image created with Dall.E, chart from Tradingview.com