Bitcoin News: Bitcoin Bottom Unlikely to Drop Below $55K, Bollinger Bands Reveal

The Bollinger Bands indicator indicates that Bitcoin will not decline below $55K. Technical indicators do not support $35K predictions. Professional insights indicate the levels of support.

The recent price movement of Bitcoin has elicited a strong debate. Some traders are projecting a crash to $35K. Others view high levels of support as holding strong.

Sykodelic on X predicts that a decline of Bitcoin to $35K is pure rubbish. The analyst has provided chart analysis to 62,000 followers in detail. Bitcoin has never violated monthly Bollinger Bands at market bottoms.

Why $35K Predictions Miss the Mark

Source: Sykodelic on X

Sykodelic says that Bitcoin only briefly breached overbought during this cycle. Earlier cycles experienced enormous RSI advances to higher bands. This growth did not happen in 2024-2025.

To reverse 75 percent, Bitcoin actually needs to expand completely, Sykodelic tweeted on X. That expansion was not provided by the cycle. Deep retreats must be preceded by deep extensions.

Bitcoin is trading at approximately 87K after temporarily reaching 84K. The asset reached highs of almost $126K in early October. That is a 31 percent correction to all-time highs.

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Historical Patterns Point to Higher Lows

The 2017 cycle gives important background. Bitcoin made a 160x run in that boom. Even that grandiose rally did not violate the lower Bollinger Bands.

It is more reflective of 2019 than 2018. QT ended with Bitcoin at mid-level Bollinger Bands. The RSI nearly coincides with that period.

Sykodelic observed the monthly Bollinger Band at $55K. The X post of the analyst stated that there is an absolute worst-case scenario when we can expect the bottom to be at most $55k.

Market Structure Has Fundamentally Changed

On X, PhilakoneCrypto questioned further retraces. The analyst cited the existence of 365 days of bear markets in history. Previous cycles saw 78% to 86% drops.

Source: X, PhilakoneCrypto 

But with institutional adoption, all this changed. The involvement of ETFs introduces new changes to Bitcoin markets. The depth of the market is far above past cycles.

Even $55K is unlikely, according to CoinEx, run by Jeff Ko of Cointelegraph. The bear-case scenario aims at 65K to 68K rather. Four-year cycles are disintegrating.

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Critical Support Zones Under Watch

Augustine Fan of SignalPlus has outlined important levels. The 72K-75K range means that it is well-supported. A sub-optimization below will lead to unforeseen effects.

A fall under will probably result in disastrous halts, Fan cautioned. The DAT interrupt sale may affect the Strategy position significantly. Their assumed losses already raise concerns.

Bitcoin is currently at the monthly mid-Bollinger Bands. Anything below the midline makes all the difference. That situation creates an opening towards $55K.

Players in the market need to comprehend drivers of prices beyond random figures. Technical indicators offer models of realistic expectations. Monthly bottoms have never been missed by Bollinger Bands.

Bitcoin is consolidating, and the debate continues. There is a historical trend in favour of floors above 55K. Institutional flows favor superficial corrections in the future.

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