Bitcoin (BTC) has recently shown volatility, bouncing above $82,000 before experiencing a steep decline. A market analyst has now sounded the alarm, suggesting that the leading cryptocurrency has yet to hit its lowest point in this cycle. Describing the recent price movement as a bull trap, the analyst predicts a continued downward trend that could see BTC drop to around $40,000 before any recovery is possible.
Analyst Forecasts Extended Bitcoin Decline
Kabuki, known for his accurate market predictions, including Bitcoin’s last price peak and the low during the 2022 bear market, has issued a stark warning. He believes that Bitcoin is poised to enter a steep freefall, potentially reaching $40,000 as the final bottom of this cycle. His analysis indicates that the current price structure mirrors a downward zigzag pattern that historically precedes a cycle bottom, suggesting a significant decline is imminent.
In a detailed post on X, Kabuki illustrated this bearish outlook using a chart that depicts Bitcoin forming a bull trap around a designated level, with projections indicating a drastic decline towards $40,000. He believes that while this drop is unavoidable, it will not happen instantly; rather, he anticipates a gradual descent.
Kabuki’s forecast includes specific price targets, expecting Bitcoin to dip to approximately $61,000, followed by a fall to $47,000—representing more than a 40% loss from current levels. After this decline, a short-term recovery to around $55,000 may occur, but he views this as a temporary uptick before a final crash to approximately $41,000.
Looking at the timeline, Kabuki estimates that Bitcoin’s price will begin its downward trajectory towards the $70,000 range in the coming days, with the anticipated crash to $40,000 unfolding around June 2026.
Notably, Kabuki has a proven track record, having accurately predicted Bitcoin’s peak above $126,000 in October 2025 and the low of $15,000 in November 2022.
Bearish Sentiment Grows Among Analysts
In a separate analysis, crypto expert Chiefy also expressed concerns about Bitcoin’s current state, labeling it as trapped in a prolonged bull trap within the current bear market cycle. Chiefy warned that a significant correction could commence as soon as next week, with the potential for Bitcoin to drop to $51,000 within 12 days, starting from May 17.
This warning is underscored by historical patterns where Bitcoin has previously rallied only to reverse sharply, causing significant losses for traders who entered the market during these temporary surges. Chiefy’s analysis suggests that the current market formation could lead to a similar outcome, reinforcing the bearish outlook in the cryptocurrency space.
