Despite Bitcoin's price falling over 50% from its all-time high of over $126,000 in October last year, reaching a multi-year low of $60,000, analyst Merlijn The Trader warns that the asset's decline may not be over.
The prominent analyst pointed out that "Bitcoin's most dangerous pattern has just completed its first phase," predicting a potential drop to $26,000.
Will We See Another 60% Crash?
Merlijn believes the first step of this "dangerous pattern" occurred after the formation of a bull trap at $105,000. The failure to sustain the rally implies that a bearish pattern for market makers has been activated. If this prediction holds true, Bitcoin's price could face a crash of over 60%, potentially reaching $26,000.
Should this extreme scenario unfold, Bitcoin would fall to its lowest level since September 2023, effectively returning its price to levels seen nearly three years ago.
"Bitcoin's most dangerous pattern has just completed its first phase. If it plays out: $26k before new all-time highs. $70k is the last line of defense."
Or a New Bull Market?
Merlijn's analysis also suggests that a drop to $26,000 could pave the way for a new bull market and record-breaking all-time highs. However, another analyst, Ali Martinez, remains more optimistic about Bitcoin's future price performance.
Martinez, on X (formerly Twitter) with approximately 165,000 followers, analyzed the Inter-Exchange Flow Pulse (IFP) indicator, noting that it "has officially started to tick up again."
The IFP indicator tracks the intensity of Bitcoin transfers between centralized exchanges. Martinez stated that the indicator has just issued a significant buy signal. This is because the rise in IFP confirms "active liquidity redistribution," which has historically been "the heartbeat of every major market expansion."
"The Inter-Exchange Flow Pulse (IFP) has officially started to tick up again. This metric tracks the intensity of Bitcoin transfers between centralized exchanges – it just issued a significant buy signal."