Bitcoin's Bearish Path: Analyst Predicts Plunge Below $40,000 After Final Surge

Despite recent price fluctuations, a prominent crypto analyst cautions that Bitcoin remains entrenched in a bear market, forecasting a significant drop below $40,000. This outlook challenges more optimistic predictions, suggesting the cryptocurrency could experience one last upward movement before a severe market correction. The Looming Double ZigZag (WXY) Correction Crypto analyst Crypto Bullet has meticulously charted Bitcoin's price action, identifying a "Double ZigZag (WXY)" formation guiding its current bearish phase since the October 2025 peak. He observes that Bitcoin's prolonged consolidation between $62,000 and $78,000 indicates a deeper bearish structure at play, differing from earlier, shorter consolidations at higher price points. According to his analysis, the recent bounce above $78,000 is not a bullish reversal but rather a component of a broader corrective wave, "Wave X." This phase is expected to culminate in a final upward push towards the $85,000 resistance level, surpassing his initial ABC target of $82,500. The $40,000 Bottom: A Test for Bulls The analyst's most significant prediction centers on "Wave Y," which he anticipates will usher in the most intense downturn of this market cycle. Once Bitcoin concludes its rally past $80,000 (completing Wave X), Crypto Bullet projects a sharp reversal, leading to a rapid price crash. This downward spiral is expected to drive Bitcoin to a potential bottom of $40,000, representing a staggering 50% decline from the $80,000 mark. This critical phase is slated to unfold between September and October 2026, a timeframe that aligns with historical bear market cycles. This scenario suggests a significant shakeout for bullish traders who might misinterpret the interim surge as the dawn of a new bull run, with analyst Tony Severino also echoing support for this bearish target.