Bitcoin News Today: Bitcoin Faces Bearish Outlook as Analysts Flag Potential 30% Drop to $89,000

Bitcoin’s price movement has triggered renewed discussions of a potential correction, with one prominent analyst outlining two distinct bearish scenarios following the recent pullback from a peak of $124,128 to around $118,000 [1]. Analyst CasiTrades has identified a three-wave corrective pattern, suggesting that Bitcoin may still be in the early stages of a broader decline. The first wave has already pushed the price to $112,000, with a partial rebound to $120,000 expected in Wave 2. If this pattern continues, Wave 3 could drive the price as low as $89,000, with further declines potentially reaching $77,000 at the 0.382 Fibonacci level and ultimately settling at $60,000 at the 0.618 Fibonacci level [1].

This bearish outlook contrasts with the broader market’s optimism, which has seen Bitcoin reach record highs in recent months. However, recent technical indicators are signaling caution. The 4-hour RSI has shown signs of bearish divergence, suggesting weakening upward momentum in the short term [1]. Additionally, Bitcoin’s failure to reclaim the $120,000 level has raised concerns among investors, with many questioning whether this is a temporary dip or the start of a more prolonged correction [3].

Another analysis highlights that Bitcoin is currently in a 56–60-day cycle following its recent volatility. Over the next 60 days, two primary scenarios could unfold: one involving a period of consolidation within a tight range and the other leading to increased volatility and further downward pressure [2]. This cyclical perspective adds another layer of uncertainty, as traders try to determine whether the current dip is a minor fluctuation or a more significant trend [1].

The potential correction could also lead to a reallocation of capital within the crypto market. CasiTrades notes that a bearish scenario for Bitcoin may drive investment into large-cap altcoins, potentially allowing some to reach all-time highs despite Bitcoin’s decline [1]. This dynamic could present both risks and opportunities for traders, depending on how the broader market reacts to the shifting sentiment.

Currently, Bitcoin is trading at $118,203, still above the 200-day moving average, which remains a key psychological level for institutional investors [1]. However, the bearish signals in the short-term technical indicators suggest that caution is warranted. The coming weeks will be critical in determining whether this correction is a temporary setback or the beginning of a more extended bear phase [3].

The market remains divided between those expecting a continuation of the bullish trend and those anticipating a deeper correction. As the price consolidates, traders are closely watching for signs of a reversal or further breakdown [1]. The ultimate outcome will depend on whether Bitcoin can regain momentum above key resistance levels or if the bearish scenario outlined by analysts like CasiTrades begins to take shape [1].

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[1] [Bearish Case for Bitcoin: Analyst Warns Macro Top Is In](https://www.newsbtc.com/news/bitcoin/bearish-case-for-bitcoin-analyst-warns-macro-top-is-in/)

[2] [Bitcoin Price Moves From 56 To 60-Day Cycle After Crash](https://cryptorank.io/news/feed/2ba4a-bitcoin-price-56-60-day-cycle)

[3] [Bitcoin Price Loses Grip on $120K Glory, Slips Way Below](https://www.techjuice.pk/bitcoin-price-loses-grip-on-120k-glory-slips-way-below-118k/)