Bitcoin is listed at close to $80,000 in the first week of May; Jerome Powell will step down as Federal Reserve chairman in a few weeks; the S&P 500 index reached an all-time high; and sentiment in cryptocurrency markets is slowly becoming positive.

Cryptocurrency trader and market analyst Aralez has entered the full cycle of the next huge cycle in the industry, which will last from the second quarter of 2026 to the end of 2027. Forecasts start with short-term bearishness prospects for both Bitcoin and Ethereum, but it doesn’t end there.

Bitcoin and Ethereum could face another deep decline before the third quarter

First stage Aralez predictions focuses on May and June 2026, when another wave of panic is expected in the market. This is the most bearish part predictions and places Bitcoin price below $58,000, which would represent a drop of about 27% from its current price of near $79,715. The chart accompanying the analysis shows Bitcoin holding near $80,000 before moving into a projected decline in the second quarter.

In his opinion, Ethereum could fall to around $1,600. This would also translate to a drop of approximately 32% from its current price of $2,359. Aralez also linked this stage to weakness in the S&P 500 index, predicting that it could reverse and fall below 6,800. This would be a stark break from the current sentiment in the stock markets, where the index is currently trading at fresh highs around 7,230.

The second part of the forecast is for the third quarter of 2026, when Bitcoin will start to form a bottom and the whales will start to accumulate. The reason for his forecast is a change in the leadership of the Federal Reserve, which will be followed by a powerful market decline and the first cut in interest rates in the US. Aralez predicts there will be a change in leadership lead to a sell-off on the market, with the worst-case scenario of the S&P 500 falling to just $5,200.

Q4 2026–2027 could bring Bitcoin back above record highs

The most bullish part of the forecast starts in the fourth quarter of 2026. Aralez expects Bitcoin to start a fresh uptrend and reach over $90,000 before the end of the year. This would represent a significant rebound from the projected target of sub-$58,000 in the second quarter, but the analyst sees this as just the first stage of a larger move.

Projections are that Bitcoin will break its record high and reach over $140,000 between the first and fourth quarters of 2027. This growth will be supported by the massive integration of artificial intelligence into the crypto industry, the introduction of quantitative easing in the face of the global crisis, and fresh narratives attracting millions of participants to cryptocurrencies.

Those who purchase Bitcoin in Q3 2026 at $58,000 or below will see a nearly 3x return within twelve months if the $140,000 target is reached.

Featured image from Pixabay, chart from Tradingview.com