The recovery in Bitcoin prices in May 2026 triggered a renewed wave of bullish optimism. However, despite rising prices, there are those who did not give in to the bullish wave, choosing a more conservative stance on cryptocurrency. As the novel month rolls around, those who refused to buck the bullish trend look to have come out on top as Bitcoin’s price reversed. Some analysts, however, predict that this may be only the beginning of declines.

Bitcoin price may be preparing to fall to novel cycle lows

According to cryptocurrency analyst Xanrox, Bitcoin prices have crashed expectedconsidering that the cryptocurrency has entered one of the most brutal bear markets in recent history. A very bearish development is the fact that the Bitcoin price has now fallen below two main channels.

Among these channels is a descending channel that was broken with a drop below $71,000. Then the second damaged channel is an ascending channelinterrupted almost at the same time as the descending canal. The analyst explains that the effect of breaking these two channels is double refraction.

The problem with double failures is that they do extremely bearish and often suggest that the failure is just beginning. With Bitcoin’s crash already underway, the cryptocurrency analyst expects the price to continue to fall.

Despite the existence of significant support around the $60,000 level, which has provided psychological support this cycle, the analyst does not believe that this level will remain. Instead, they suggest holding off on purchasing as the price is expected to drop to $48,000, with a high probability of falling to the $40,000-$30,000 level.

What investors should watch out for

Currently, there is a massive outflow in the cryptocurrency market and Bitcoin, being the leading cryptocurrency, has been the most successful. The bear market has also pushed out a significant number of users who are heading towards cash in a market that seems to offer nothing but losses.

Xanrox also suggests that banks are now controlling the price of Bitcoin. According to the post, banks can reduce the price by 20% in one day when they start selling futures contracts. This would pose significant stress to investors as retail traders are liquidated en masse.

In this case, losses were expected to deepen as the market ultimately declined. Nevertheless, there is a possibility that the bulls will put up a stern fight at $60,000 as this is the low of the cycle.

Featured image from Dall.E, chart from TradingView.com