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Home»Bitcoin»Bitcoin could enter a freefall if this level bursts: analyst
Bitcoin

Bitcoin could enter a freefall if this level bursts: analyst

2026-05-29No Comments3 Mins Read
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Bitcoin has bounced back from the $70,000 zone several times in 2026, but analysts warn the next test of that level could end differently.

A line that has existed since 2017

The lower bound of a rising wedge pattern – a trendline that first appeared as support in mid-2017 – has absorbed several sharp declines over the years.

Bitcoin hit it during the FTX-induced crash of November 2022, when prices fell to $15,400, holding the line. In the first months of 2026, it held again three times, at $60,000 in February, and then at $64,900 and $65,000 in March and April.

Related reading: Bitcoin’s four-year rhythm is still in play, says Crypto CEO

Crypto market commentator MichaelXBT brought renewed attention This pattern followed after Bitcoin fell below $74,000 for the first time in more than a month.

Based on his chart analysis, the supporting trendline is now around $70,000, and a confirmed break below would be historically significant.

Bitcoin 10-year wedge support: $70,000

If that level is broken, bears will be richly rewarded.

It will ignite the largest red weekly candle that Bitcoin has seen in years.

History will be made. pic.twitter.com/0HqImRTD4s

— Crypto Michael (@MichaelXBT) May 27, 2026

“If that level breaks, bears will be richly rewarded,” he said.

What a break can mean

MichaelXBT says an outage would lead to the largest weekly red candle Bitcoin has seen in years. He stopped short of naming a price target or estimating how far a decline could extend, but he believes the event would be a notable moment in the asset’s history.

See also  Bitcoin ETFs: Institutions Refuse to Give Up

The wedge pattern at the center of his analysis is formed by two converging trend lines moving upward, with the lower one rising faster than the upper one. When prices break below the lower line, the pattern is generally read as a sign that bullish momentum has run out.

Bitcoin is currently trading at $73,473. Graphic: Trading view

Not everyone sees the collapse coming

Michaël van de Poppe, an experienced crypto market analyst, pushed back on the more bearish readings. He described what the markets are going through as a standard end-of-month correction, largely driven by asset managers rebalancing their portfolios.

Related reading

Bitcoin was rejected at $77,000, he said, and the pullback that followed fits a known pattern rather than a disturbance signal.

Van de Poppe acknowledged that if Bitcoin fails to hold its key support area, prices could slide towards the lower $60,000s. But he immediately said that the current weakness alone is not enough to reach a new low.

Featured image from Pexels, chart from TradingView



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