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$BTC Bottom May Hold Above $55K Per Technical Analysis

A #crypto analyst has used technical indicators to project that #Bitcoin's bear market floor will stay above $55,000 rather than falling to $35,000 as some predict. The assessment relies on Bollinger Bands and RSI data that suggest shallower corrections this cycle.

Analyst Sykodelic said in an X post Tuesday that predictions of $BTC dropping to $35,000 in 2026 represent “absolute rubbish.” A decline to that level would constitute a 72% retracement, similar to the 77% fall from $69,000 in November 2021 to $15,500 one year later.

However, such deep corrections require full market expansion that hasn't occurred this cycle, according to the analysis. #Bitcoin prices have never fallen below monthly Bollinger Bands throughout its history, providing a technical floor that suggests maximum downside to $55,000 if the current monthly candle closes below the midline.

The 2017 cycle produced huge gains, but retracements still remained above the monthly lower Bollinger Band. Current expansion represents the weakest on record, making an unprecedented deep contraction unlikely from a technical perspective.

$BTC currently sits 31% below its early October peak of $126,000, a normal correction even during bull markets. Jeff Ko from CoinEx exchange considers even $55,000 unlikely, projecting bear case scenarios would see revisits to $65,000 through $68,000 levels instead.