Bitcoin Approaching Bear Market?
- Bitcoin is nearing the onset of its bear market, assuming the validity of the four-year cycle theory.
- Currently, Bitcoin is facing a resistance trend line that might trigger a $100,000 support retest.
Bitcoin (BTC) might have only a month left before concluding a four-year cycle, which could lead to a drop to $50,000.
Recent comments from Joao Wedson, the founder and CEO of the crypto analytics platform Alphractal, also mention a $140,000 price target for BTC.
Bitcoin is experiencing a significant challenge as the bull market encounters a 15% correction from its all-time highs.
Despite uncertainties about the future, Wedson suggests that a new bear market could commence as soon as October.
He uploaded charts illustrating the “Repetition Fractal Cycle” to X, indicating that BTC/USD is nearing a point historically associated with the dominance of bear markets.
“Of course, it would be reckless to assume that Bitcoin has only a little over one month left in this cycle based solely on this chart,” he remarked.
Wedson emphasizes that this cycle is distinctly different from previous ones due to the involvement of major institutional investors and Bitcoin’s emergence as a significant asset.
“The real question is whether this fractal will remain reliable amidst increasing speculation regarding ETFs and the rising institutional demand,” he stated.
A downturn in the US macro asset market could pose a severe risk for Bitcoin bulls if it aligns with the bear-market timeline suggested by the fractal.
The ongoing debate about the relevance of the four-year price cycle in 2025 raises critical questions.
Once October arrives, if the bears gain traction, BTC price targets, which are already ambitious, may include an additional level to consider for October 2026. Wedson remarked:
Market participants are looking for a $100,000 support retest as part of the current correction.
One trader even predicts that this event may occur within the week, asserting that if the bulls cannot maintain the $100,000 level, the bull market will conclude.
BTC/USD is currently trying to break through a downward-sloping trend line, which has acted as a barrier for prices since the correction began in mid-August.
“This 1 chart decides if $BTC breaks below $100K or breaks to new ATH,” trader Killa informed his followers on X on Thursday.
This article does not provide investment advice or recommendations. Every investment and trading decision carries risks, and readers should perform their own research before making any choices.
