The Bitcoin price recovery in May 2026 caused a renewed wave of bullish optimism. But despite the rising prices, there are some who have not given in to the bullish wave and have taken a more conservative stance on the cryptocurrency. With the new month, those who refused to be bullish seem to have come out on top as the Bitcoin price has reversed. However, some analysts predict that this could be just the beginning of the decline.
Bitcoin price could be preparing for a new cycle low
According to crypto analyst Xanrox, the Bitcoin price crash was the result expectedconsidering that the cryptocurrency has entered one of the most brutal bear markets in recent history. A very bearish development is the fact that Bitcoin price has now fallen below two major channels.
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These channels include a descending channel, which was broken when it fell below $71,000. Then the other broken channel is an ascending channelbroken almost simultaneously with the descending channel. The result of breaking these two channels, the analyst explains, is a double collapse.
The thing about double breakdowns is that they are extremely bearish and often suggest that the crash is just beginning. Now that the Bitcoin crash has already started, the crypto analyst expects the price to fall further.
Despite there being significant support around the $60,000 level, which has served as psychological support this cycle, the analyst does not believe this level will hold. Instead, they propose to postpone the purchase as the price is expected to fall to $48,000, with a high chance of a crash to the $40,000-$30,000 level.
What investors should pay attention to
Currently, there is a major outflow happening in the crypto market, and Bitcoin, as the leading cryptocurrency, has taken the biggest hit. The bear market has also pushed out a significant number of users as they move towards cash in a market that seems to offer nothing but losses.
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Xanrox also suggests that the banks are now checking the Bitcoin price. According to the post, banks could drop the price by 20% in one day once they start selling futures. This would put a lot of pressure on investors as retail traders are liquidated en masse.
In this case, losses were expected to widen as the market made its final downward move. Nevertheless, there is a possibility that the bulls will put up a big fight at $60,000 as this is the low point of the cycle.
Featured image of Dall.E, chart from TradingView.com