A crypto analyst has suggested that Bitcoin (BTC) is still in a bear market despite its recent price surge, warning that the cryptocurrency could be headed for a deeper correction below $60,000. The call comes in the middle repeated failed pimples and weakening momentum, casting doubt on a near-term recovery. According to the analyst, the current price structure suggests this bears remain firmly in controlwhile downside risks continue to increase.
Why Bitcoin is still bearish despite recent rebounds
A technical analyst known as JDK Analysis on shared new insights into Bitcoin’s current price action and possible next steps. He stated this in his post Bitcoin’s recent price surge above $75,000 marked his fourth fakeout. He argued that the latest upward moves, rather than a sustained price recovery, could signal weakness, reinforcing his base case that BTC is currently in a short-term reaccumulation phase within the a broader bear market.
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JDK Analysis noted that the current reaccumulation phase missed the key signals typically seen at true market bottoms, which often precede a sustained price reversal. As a result, he suggests that any short-term upside potential is likely to be limited until a definitive price bottom is reached.
The analyst explained that strong market bottoms do not happen suddenly. Instead, they form after a prolonged downward trend involving multiple processes. He argued that large-scale investors cannot simply “buy the bottom” like most retail traders because their investments are substantial enough to move the market and influence prices.
He added that buying will only happen if enough traders are willing to sell coins, making it even harder for big players to take positions. If they decide to post large purchase orders even if there aren’t enough sellers available, they can end up pushing prices up and buying at even worse levels.
To address this, JDK Analysis noted that most major players typically look for liquidity by targeting areas of clustered orders. He said it also helps if many traders are on the wrong side of the market because their whale positions provide easy exit liquidity. He called this process “liquidity engineering” and noted that it explains why Bitcoin’s price often moves up and down within certain limits, making it appear as if it is recovering.
The analyst added that the same process also applies when Bitcoin experiences sudden drops. During sharp moves, traders often panic and sell, leading to minus fake-outs in which prices fall briefly before reversing or stabilizing. Overall, JDK Analysis remains steadfast in its view that the market is not in a recovery phase. Instead, he argues that the bears are still largely in control, with no confirmed bottom in place and another major price crash still looming.
BTC faces a possible crash below $60,000
While he maintains that the market is still bearishJDK Analysis has explained what a real bottom should look like. He stated that a real bottom after several failed attempts to lower prices. He highlighted that during repeated downward moves, trading volume tends to decrease, indicating this the selling pressure decreases as salespeople become exhausted. Once this happens, the market starts to shift before a new bullish trend begins.
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However, the analyst states that current market conditions show opposite behavior. Instead of exhaustion, prices continue to test the higher range before you get rejected. He also noted that BTC’s total supply appears to dominate demand, with any upward momentum accompanied by declining trading volume. The analyst considers this a major bearish signal.
His chart shows that once Bitcoin falls further below $75,000, the cryptocurrency could be on its way to the next crash level around $59,000. If this support fails, the analyst predicts an even deeper correction below $56,000, which could potentially mark the final bottom.
Featured image created with Dall.E, chart from Tradingview.com