Bitcoin Enters a Bear Market: Analyst Predicts Price Drop Below $30,000

In recent times, Bitcoin's price movements have shown significant differences compared to its previous bull cycles. Notably, after reaching new all-time highs, altcoins did not follow suit, resulting in the absence of an anticipated altcoin season. Crypto analyst Swallow Academy now suggests that this trend indicates Bitcoin has entered a new bear market phase.

Key Takeaways

Bitcoin has entered a new bear market phase, according to analyst Swallow Academy.
A Head and Shoulders pattern indicates potential weakness, suggesting a price drop below $30,000 is likely.
The first support level to watch is at $52,300, but this may not hold, with a further decline anticipated.
The $30,000 mark could be an optimal level for accumulating Bitcoin, as recoveries often follow swiftly from such lows.

Bitcoin

Why the Bitcoin Price Is Expected to Fall Below $30,000

According to data shared by the analyst on TradingView, the Bitcoin price has formed a Head and Shoulders pattern. This pattern began with the first shoulder forming at the start of 2025, which was followed by the creation of the head when Bitcoin reached a new all-time high later that year. As the price began to decline in 2026, a second shoulder emerged.

Despite the second shoulder appearing somewhat weak, Swallow Academy confirms that it still completes the pattern. The conclusion of this formation signals a potential weakness in Bitcoin's price, suggesting it could decline even further.

The current structure implies lower price levels than many in the market anticipate. Although some may argue it's drastic to declare a bear market for Bitcoin, the analyst believes the evidence points in that direction. Since this cycle has not followed historical trends, it's reasonable to expect this bear market won't unfold like previous ones. Often, the opposite of what investors predict occurs—many believe Bitcoin won’t drop below $40,000, which could make a fall to even lower levels more likely. Previously, Bitcoin grappled with maintaining support at $70,000; if it fails to hold this level, a deeper decline may follow.

Bitcoin price
Source: TradingView

Once Bitcoin's price starts to decline, the first target for support is around $52,300. However, the analyst predicts this level will likely break as well, eventually leading Bitcoin to a bottom near $30,000. According to Swallow Academy, this price point could serve as an ideal accumulation zone for BTC, as recoveries tend to happen swiftly following a price bottom.

Bitcoin price chart from Tradingview.com
BTC maintains bullish momentum | Source: BTCUSD on Tradingview.com