Bitcoin Plummets as Bearish Sentiment Grips Crypto Market

The current funding rates for mainstream centralized exchanges (CEX) and decentralized exchanges (DEX) indicate that the market is in a full-fledged bearish state. This bearish sentiment is supported by various analysts and market indicators, suggesting a potential downturn in the cryptocurrency market.

Prominent crypto analyst Tony Severino has shared a new Bitcoin price forecast, suggesting that the pioneer cryptocurrency is on the verge of another major correction. Severino's analysis points to the formation of a Lower Time Frame (LTF) Head and Shoulders pattern on the Bitcoin price chart, which is a technical analysis formation that usually indicates a potential reversal from bullish to bearish. This pattern appears as three peaks on a price chart, with the middle peak being higher than the others. Severino's chart illustrates a symmetrical triangle with an internal A-B-C-D-E wave-like structure, indicating lower highs and higher lows. The formation of this pattern suggests that Bitcoin's price could break down to the lower boundary of the triangle around the mid-$80,000 region, completing the D wave and possibly testing the next critical support area.

Severino predicts that once Bitcoin drops to this level, it could bounce back to new highs, rallying toward the E wave in the triangle, which is positioned around the $90,000 price level. However, the analyst's chart also indicates another deeper pullback after this price rebound to $90,000, suggesting that Bitcoin could drop down towards $83,600 to $80,200. This bearish outlook is supported by the recent market downturn, which has negatively impacted Bitcoin's value, prompting less-than-favorable predictions from top analysts.

While many in the crypto market label this massive decline in the Bitcoin price as the beginning of the bear market, others believe that this price crash could be a mere bear trap. A market expert known as 'Crypto Caesar' predicted that Bitcoin would be on the verge of its final bear trap before entering the last phase of this bull cycle. This implies that Bitcoin is likely to face another sharp decline, shaking out weak hands before surging to a new all-time high. The analyst's chart predicts that it could top out above $110,000, signaling the end of the bull market.

The bearish sentiment is not limited to Bitcoin. Ethereum and most altcoins have also