Bitcoin Could Find Its Cycle Bottom Near $55,000 as Signals Align

• Bitcoin’s current correction may bottom around $55,000, as historical patterns and indicators suggest a milder retracement.
• Analyst Sykodelic notes RSI and Bollinger Bands show no signs of a deep crash to $35,000.
• Support between $72,000–$75,000 remains critical; breaking it may trigger automated selling and market volatility.

Bitcoin has recently entered a correction phase, sparking renewed debate across the crypto space, particularly as some observers forecast that the asset may drop to $35,000. However, as one prominent analyst has argued, such expectations are unlikely to occur. Instead, Bitcoin could fall toward the $55,000 level.

Source: X

The debate was sparked by X user “Sykodelic,” who has more than 62,000 followers, rejecting predictions that Bitcoin could drop by as much as 72%, similar to previous cycles. He explained that this cycle has not shown the level of strength in the RSI needed for such a deep decline. Therefore, a crash to $35,000 is not going to happen, he argued.

Sykodelic also emphasized that Bitcoin never dipped below the Lower Bollinger Band on the monthly chart, even in previous cycles that experienced huge movements. To support this, he compared the present market scenario with that in the year 2017, in which huge movements were seen, but still, the breaking below the Lower Bollinger Band did not happen in the corrective phase.

Source: X

Using this reasoning, he thinks that the very worst that could happen, if the monthly chart were to close below its mid-line, would be a low of approximately $55,000. Although there’s been a 31% retracement from its October high of $126,000, he points out that this is normal within bigger uptrends.

Bitcoin Correction Expected to Be Mild

However, not everyone is aligned with this figure of $55K, although the opposing arguments do not predict a downfall. According to Jeff Ko, the head of analysis for CoinEx, even if a downturn occurs that touches $55K, this is highly unlikely.

Ko thinks that the dynamics of Bitcoin’s marketplace have shifted because of greater involvement from traditional financial institutions, the entry of ETFs, along more layers being added. Due to this, a downturn will remain above the figures of $65,000 to $68,000, with extreme downturns, as seen in previous cycles, being irrelevant within the prevailing scenario.

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Bitcoin Faces Critical Support Danger

However, other experts still see the market as being at risk if a strong support zone breaks. According to Augustine Fan, insights head of SignalPlus, breaking below the support zone of $72,000–$75,000 can spark strong automated selling, whose consequences are difficult to predict. Large positions linked with automated platforms might intensify the situation if this zone breaks.

At press time, Bitcoin is trading at $86,600, slightly moving up from the low of $84,000. However, despite the divergent views, the primary question that still arises is: how low will this correction be, or is Bitcoin moving into a different cycle, driven by a different set of investors?

Source: CoinMarketCap

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