TLDR
Bitcoin dropped to a new monthly low of $86,400 following a reversal of early gains sparked by Nvidia’s positive revenue outlook.
Analyst Cas Abbé believes Bitcoin will consolidate between $85,000 and $100,000 for the next 3 to 4 weeks.
Both the Q1 2025 correction and the current pullback were driven by broader macroeconomic fears affecting both tech stocks and crypto markets.
Bitcoin’s weekly RSI dipped into oversold territory, signaling potential local bottoms and a possible rally toward $98,000 to $100,000.
Analyst AlejandroBTC cautions that Bitcoin’s breakdown from a rising wedge pattern could lead to further declines in the near term.
Bitcoin (BTC) initially surged following Nvidia’s strong revenue outlook, calming concerns over an AI bubble. However, the gains quickly reversed as US stocks sold off, sending Bitcoin to a new monthly low of $86,400. Data suggests the cryptocurrency could face further downside in the coming weeks.
Analyst Predicts Bitcoin to Consolidate Soon
Bitcoin’s recent price action mirrors a pattern seen in Q1 2025, according to analyst Cas Abbé. In Q1 2025, Bitcoin lost momentum near its all-time high, fell below a key support level, and decoupled from a rising stock market. This correction ended with Bitcoin consolidating in a multi-week range before rallying to new highs.
Abbé believes that Bitcoin will likely enter a consolidation phase between $85,000 and $100,000 for the next 3 to 4 weeks. The analyst notes that broader macroeconomic fears have driven both the Q1 2025 correction and the current pullback. In 2025, the sell-off was sparked by the US tariff war, while now, panic surrounding a potential AI bubble has created volatility in both tech stocks and crypto markets.
Bitcoin Nears Oversold Conditions as Downtrend Continues
Despite the recent downturn, analyst BitBull remains bullish on Bitcoin’s short-term prospects. He points to Bitcoin’s oversold conditions as evidence of potential local bottoms. On Thursday, Bitcoin traded near the lower boundary of its descending channel, which has previously acted as an accumulation zone during past corrections.
BitBull’s analysis suggests Bitcoin could rally back toward $98,000-$100,000 in the near term. This outlook is supported by the cryptocurrency’s weekly relative strength index (RSI), which has dipped into oversold territory for the first time in months. According to BitBull, this technical setup could indicate a strong rebound for Bitcoin in the weeks ahead.
However, not all analysts share a positive outlook for Bitcoin. AlejandroBTC remains bearish, noting that Bitcoin has broken down from a rising wedge pattern. In classical technical analysis, such a breakdown typically signals the end of a major trend.
AlejandroBTC suggests that this breakdown could lead to further price declines in Bitcoin. He has warned about the rising wedge pattern for months, and now, its breakdown points to a potential long-term downtrend for the cryptocurrency.
