Bear Market Indicator Predicts Bitcoin Price Crash to $40,000 by 2026
The Bitcoin price may decline further, with a new bear market indicator suggesting a potential crash to $40,000. Crypto analyst Xanrox predicts this drop could occur by 2026, noting that Bitcoin's price follows a cycle linked to halving events occurring every four years.
Key Points from the Analysis
- Bull markets last between 742 and 1,065 days, while bear markets last around 364 to 413 days.
- Historically, Bitcoin experiences price declines of 77% to 86% after bull markets.
- Xanrox forecasts a 65% crash to $40,000, citing increased market capitalization and institutional adoption.
- The current market capitalization of Bitcoin is $1.63 trillion, making extreme price targets unrealistic.
- A bullish phase is anticipated to begin in 2026 after the current bear market.
Market Sentiment
CryptoQuant CEO Ki Young Ju also indicates the end of the Bitcoin bull cycle, predicting 6 to 12 months of price fluctuations. He notes that all on-chain metrics are signaling a bear market, with liquidity decreasing and whales selling BTC at lower prices. Currently, Bitcoin trades at $82,549, over 20% below its recent peak of more than $109,000.
