Analyst warns Bitcoin repeats 2022 pattern, risks 40% drop to $35k

Analyst flags 2022-style BTC setup. 40% drop risk to $35k.

A pseudonymous analyst says Bitcoin is mirroring the 2022 bear pattern. An upper-wick completion could trigger a 40% slide.

A crypto analyst known as Sherlock pointed to repeating signals on the weekly chart. He outlined the sequence on X with chart screenshots here.

• Weekly trendline broke after initial declines, opening the way for bears source.
• Several red weekly candles followed, then a relief bounce and mid-range consolidation source.
• The bounce pushed toward $74,000, but bulls were rejected at resistance source.
• Price then broke below the trend low, echoing 2022 action source.
• The final step is an upper-wick candle. Sherlock says it’s now printing source.

If this wick completes, Sherlock expects a breakdown similar to 2022. Then, a 40% drop could target the $35,000 area source.

Back in 2022, a comparable breakdown took price from $30,000 to $17,500, a 40% fall, before a relief bounce source.

That leg marked the final flush of the bear market. The following months saw a fast recovery, and the next year set new all-time highs source.