The latest Bitcoin price action gave bearish analysts another reason to claim that the cryptocurrency is still undergoing a deeper correction. Bitcoin has fallen back to $70,000 and selling pressure is mounting after another failed attempt maintain a higher level. The Crypto Lens analyst warned that Bitcoin may still need one last move down to $42,000 before a recent bull run begins towards recent all-time highs above $126,000.

Bitcoin is still in a bull trap

Technical analysis of Bitcoin’s price action predicts a bearish outlook at a tense moment for the cryptocurrency. Bitcoin has already been corrected by over 15% since it reached $82,850 in early May, but technical analysis by cryptocurrency analyst Crypto Lens suggests that the downtrend may not end until Bitcoin breaks above $50,000.

In particular, the Crypto Lens chart represents current Bitcoin setup as a cycle transition. The analyst’s roadmap starts with the idea that Bitcoin has already printed its major high around $126,199 in October 2025 and has since gone through a series of failed attempts to regain value.

The first major rejection on the chart is marked as “Bull Trap #1” and came after Bitcoin failed to maintain the upper distribution zone near the all-time high during the period from November 2025 to January 2026. From there, the price fell to the lower red range in February 2026.

Bitcoin then attempted another rebound in May, but the Crypto Lens chart shows it moving as “Bull Trap #2.” The analyst’s opinion is this there is this second trap is almost complete and the next expected move will be a drop into the lower accumulation zone before the market can begin to build towards the next major cycle.

Bitcoin price chart. Source: @crypto_lens_ On X

$42,000 disaster before $126,000 bull run

The most fascinating part of the Crypto Lens analysis is that the bearish target does not cancel out the bullish end. The chart shows that Bitcoin falls into the blue accumulation range around $42,000, after which it gradually enters the re-accumulation stage and then the margin stage. Therefore, the analysis effectively argues that Bitcoin must fall first due to its current structure there is still no suitable bottom.

The roadmap also envisions a longer time horizon for this movement, extending beyond 2026. The accumulation range around $42,000 is expected to extend through mid-2026, with the re-accumulation window extending into early 2027. Thereafter, the margin phase indicates recovery throughout 2027, with the ultimate target exceeding the current all-time high of $126,100.

At the time of writing, Bitcoin is trading at $69,920, down 3.9% over the past 24 hours after falling below $70,000 from the intraday high of $72,929. The decline is also due to the news that Strategy sold a tiny part its Bitcoin holdings for the first time since December 2022.

Featured image created with Dall.E, chart from Tradingview.com