Two Bearish Bitcoin Scenarios Could Trigger Price Crash
After hitting a new all-time high, the Bitcoin price quickly retraced to last week’s levels, indicating renewed bearish control. Crypto analyst Melikatrader outlines two possible scenarios, each starting with a bullish rebound before facing rejection at key supply zones. In the first scenario, Bitcoin price rallies toward $118,000 then reverses as sellers emerge. In the second, it extends gains into the $119,000–$120,000 range before a similar pullback. Both paths end with a steeper decline, targeting support around $115,800. The initial break below the lower trendline of an ascending channel signals increasing bearish pressure. Traders should monitor supply zone rejections and watch for a potential bounce at the $115,800 demand level for signs of stabilization and the next rally.
Bearish
Breaking below the ascending channel’s lower trendline and the outlined scenarios both end in price rejections at critical supply zones, indicating dominant selling pressure. Historical patterns show that rejections near high-volume supply areas often precede significant declines, as seen in previous Bitcoin corrections in 2021 and 2023. The forecast aligns with traders’ tendencies to offload positions at resistance levels around $118,000 and $120,000, intensifying bearish momentum. In the short term, this could lead to a swift drop toward the $115,800 support level. If this demand zone holds, a rebound may occur, but failure could extend the downtrend further. Overall, the analysis suggests heightened downside risks before any sustainable recovery.