Bitcoin (BTC) remains trapped inside a descending channel on the daily chart despite its recent recovery above $70,000, and one analyst warns the cryptocurrency could fall another 40% to around $47,000 before finding a bottom.
Bearish Channel Holds
Analyst HAMED_AZ, posting on TradingView, argued that the move above $70,000 amounts to little more than temporary relief. The price broke below support at $79,000 and has yet to retest that level, which has now flipped into resistance.
That resistance zone between $79,000 and $82,000 aligns closely with the 0.5 Fibonacci retracement level. The confluence makes it a critical area for determining what comes next.
If Bitcoin faces rejection there, HAMED projects a decline below $50,000, with a potential bottom near $47,000 — more than 60% below all-time highs. "As long as price remains below the supply zone and the upper boundary of the descending channel, the dominant scenario favors a bearish continuation after a pullback into resistance," he wrote.
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Why It Matters
The bearish case rests on a well-defined technical structure that has governed price action for weeks. A sustained break above $82,000 would invalidate the descending channel and open the door to a potential trend reversal, but until that happens, the burden of proof sits with the bulls.
Short of that breakout, the analyst's framework suggests bears remain in control. A 40% drawdown from current levels would represent the kind of correction that historically reshapes market sentiment and forces weaker hands out of positions.
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