Bitcoin’s rally stalls as analyst warns of a potential 50% plunge toward $34K Bitcoin has slid over the past few months as markets reacted to a string of negative headlines — most notably the recent U.S. strike on Iranian armed forces — leaving risk assets, including crypto, under pressure. Although prices appear to be forming a tentative bottom, some analysts warn a deeper drop could still be coming. Bears broke the $70,000 support level earlier, and that breakdown has exposed renewed downside risk. Crypto analyst Minga, posting on X (formerly Twitter), says Bitcoin is tracing an ABC corrective wave pattern, and according to their chart the market is now in the final, most bearish leg: Wave C. Key takeaways from the analysis - The analyst’s wave count starts with Bitcoin trading above $100,000 and shows the market unfolding lower through an ABC sequence. - Wave C is typically the most forceful part of a corrective pattern; Minga estimates it could produce an almost 50% decline. - Under that scenario, Bitcoin would slip below $40,000 and could find a bottom around $34,000 (with some margin for variation). - Near-term support of note sits just under $50,000 — specifically around $49,577 — and beneath that level there is scant support, according to the analysis. Caveats - Minga acknowledged that historical patterns don’t always repeat exactly, so the outlook is probabilistic rather than certain. Traders should weigh this scenario alongside other indicators and risk factors. What this means for traders If the ABC wave thesis plays out, traders should prepare for materially higher volatility and the possibility of much lower price levels than recent support points suggest. Conversely, a failure of the bearish wave count would open the door to stabilization and potential recovery, so monitoring key levels like $49,577 and how price behaves around $40,000 will be important. We’ll continue tracking price action and analyst updates as the market digests both macro headlines and on-chain signals. Read more AI-generated news on: undefined/news