Bitcoin’s latest price action has produced bearish analysts more reason to argue that the cryptocurrency is still undergoing a deeper correction. Bitcoin has fallen back to $70,000 and selling pressure is increasing after another failed attempt maintain higher levels. Crypto analyst Crypto Lens has warned that Bitcoin may need one last move lower to $42,000 before a new bull run back to new all-time highs above $126,000 can begin.
Bitcoin is still in a bull trap
Technical analysis of Bitcoin’s price action predicts a bearish outlook during an exciting moment for the cryptocurrency. Bitcoin has already been corrected by more than 15% since the price reached $82,850 in early May, but technical analysis from crypto analyst Crypto Lens suggests the downtrend may not end until Bitcoin falls below $50,000.
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Particularly the Crypto Lens chart presents the current one Bitcoin setup as a cycle transition. The analyst’s roadmap is based on the idea that Bitcoin has already reached its all-time high of almost $126,199 in October 2025 and has since gone through a series of failed recoveries.
The first major rejection on the chart is referred to as ‘Bull Trap #1’, which appeared after Bitcoin failed to keep its upper distribution zone close to all-time highs between November 2025 and January 2026. From there, the price collapsed to a lower red range in February 2026.
Bitcoin then attempted to bounce again in May, but the Crypto Lens chart marks this move as “Bull Trap #2.” The analyst’s view is that this second fall is is now almost complete, with the next expected step being a decline into a lower accumulation zone before the market can start building towards the next major cycle.
Bitcoin price chart. Source: @crypto_lens_ On X
The $42,000 crash before the $126,000 bull run
The most interesting part of Crypto Lens’ analysis is that the bearish goal does not negate the bullish endgame. The chart shows Bitcoin falling into a blue accumulation range of around $42,000 before gradually entering a reaccumulation phase and then a markup phase. Therefore, the analysis essentially argues that Bitcoin needs to move lower first due to its current structure still lacks a good bottom.
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The roadmap also gives the move a longer time horizon extending beyond 2026. The accumulation range of around $42,000 is expected to extend into mid-2026, and the reaccumulation box extends into early 2027. The markup stage then points to a recovery in 2027, with the eventual target above the current all-time high line of $126,100.
At the time of writing, Bitcoin is trading at $69,920, down 3.9% in the past 24 hours after falling below $70,000 from an intraday high of $72,929. The drop also comes amid news that Strategy a small portion sold his Bitcoin ownership for the first time since December 2022.
Featured image created with Dall.E, chart from Tradingview.com