After briefly reclaiming levels above $82,000, Bitcoin has once again faced strong rejection pressure, leading several market analysts to warn that the current rebound may be another temporary bull trap rather than the start of a sustained recovery.
Some analysts now believe Bitcoin could experience a deeper correction in the coming months before establishing a new long-term bottom.
Analyst Predicts Bitcoin Could Fall Toward $40K
Crypto market analyst Kabuki, known for previously calling Bitcoin’s 2022 bear market bottom and a major 2025 market top, believes the current market structure signals another significant decline ahead.
According to the analyst, Bitcoin’s recent recovery resembles a classic bearish zigzag pattern often associated with late-stage market corrections.
Kabuki argues that:
- The recent rebound above $82,000 may have been a temporary bull trap
- Bitcoin could gradually decline from current levels toward $61,000
- Additional downside may push BTC toward the $47,000 range
- A final capitulation move could eventually send prices close to $40,000 before a broader recovery begins
The analyst expects the decline to unfold over the coming weeks rather than happening immediately, with a possible final bottom forming around mid-2026.
Temporary Relief Rallies May Continue
Despite the bearish outlook, Kabuki noted that Bitcoin may still experience short-term recovery rallies during the broader correction phase.
One projected scenario suggests:
- A drop toward lower support levels
- A temporary rebound near $55,000
- Followed by another wave of selling pressure toward cycle lows
The analyst believes these relief rallies could trap traders into assuming the market has fully recovered before another sharp downturn occurs.
Another Analyst Warns of “Final Bull Trap”
In a separate market analysis, crypto trader Chiefy described Bitcoin’s current setup as potentially the “longest and final bull trap” of the ongoing bearish cycle.
According to Chiefy:
- A sharper correction could begin within days
- Bitcoin may revisit levels near $51,000 over the short term
- Current market behavior resembles previous failed recovery rallies seen during past corrections
The analyst shared charts highlighting similar historical patterns where Bitcoin briefly recovered before reversing sharply lower, catching overly bullish traders off guard.
Market Remains Divided
While bearish analysts warn of further downside, broader market sentiment remains mixed as investors continue monitoring:
- Macroeconomic conditions
- Interest rate expectations
- Institutional demand
- ETF inflows
- Global liquidity trends
Bitcoin’s recent volatility reflects ongoing uncertainty across both crypto and traditional financial markets, with traders closely watching whether current support levels can hold or if another deeper correction is approaching.
