The Bitcoin price recovery in May 2026 sparked a fresh wave of bullish optimism. But even as prices climbed, some investors held back, taking a more cautious stance on the cryptocurrency. Now, with the new month underway, those who resisted the bullish trend appear to have been right, as Bitcoin’s price has reversed course. Still, some analysts believe this could be just the beginning of a deeper decline.
Bitcoin Price Could Be Headed for New Cycle Lows
According to crypto analyst Xanrox, the Bitcoin price crash was expected, as the cryptocurrency has entered one of the most severe bear markets in recent history. A particularly bearish sign is that Bitcoin’s price has now fallen below two major channels.
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These channels include a descending channel, which was broken when the price dropped below $71,000. The other is an ascending channel, broken around the same time. The analyst explains that breaking both channels results in a double breakdown. Double breakdowns are extremely bearish and often signal that the crash is just getting started.
With the Bitcoin crash already underway, the analyst expects prices to keep falling. Even though the $60,000 level has acted as strong psychological support during this cycle, Xanrox doesn’t believe it will hold. Instead, they suggest waiting before buying, as the price is expected to drop to $48,000, with a strong chance of falling further to the $40,000–$30,000 range.
What Investors Should Watch For
Right now, there’s a major outflow happening in the crypto market, and Bitcoin, as the leading cryptocurrency, has taken the biggest hit. The bear market has also pushed many users out, as they move toward cash in a market that seems to offer little but losses.
Related Reading: Pundit Shares Why Most People Will Miss The XRP Run
Xanrox also suggests that banks are now controlling Bitcoin’s price. According to the post, banks could push the price down by 20% in a single day once they start selling futures. This would put heavy pressure on investors, as retail traders are liquidated en masse. In this scenario, losses would likely grow as the market makes its final downward move.
Still, there’s a chance that bulls will put up a strong fight at $60,000, since it’s the cycle’s swing low.
Featured image from Dall.E, chart from TradingView.com
Frequently Asked Questions
Here is a list of FAQs based on the analysts prediction that Bitcoin could drop to 40000
BeginnerLevel Questions
1 Who is the analyst that predicted the Bitcoin crash
The article refers to an unnamed analyst who previously correctly called a major Bitcoin price drop Their identity is not specified in the headline but they are known for making accurate bearish predictions
2 Why does the analyst think Bitcoin will drop to 40000
The analyst likely bases this on technical indicators and market sentiment suggesting that current bullish momentum is weak and that a correction is due
3 When does the analyst think Bitcoin will hit 40000
The exact timing isnt given in the headline but the article implies it could happen within a specific shortterm windowoften within weeks or a few months depending on market conditions
4 Is 40000 a guaranteed price target
No This is a prediction not a guarantee Crypto markets are highly volatile and prices can change based on news regulations or large investor moves
5 Should I sell my Bitcoin right now because of this prediction
Not necessarily One analysts forecast is just one opinion Its smart to do your own research consider your risk tolerance and avoid making panic decisions based on a single prediction
IntermediateLevel Questions
6 What technical indicators might support a drop to 40000
Common bearish signals include a death cross a breakdown below key support levels or a bear flag pattern on the daily chart
7 How does this 40000 target compare to previous Bitcoin crashes
40000 would represent a roughly 2030 drop from current levels This is less severe than the 2022 crash but still significant
8 Could the prediction be wrong if positive news comes out
Yes Major catalysts like a spot Bitcoin ETF approval a favorable regulatory change or institutional buying could invalidate the bearish forecast and push prices higher
9 What does when that might happen mean in practice
It usually means the analyst has identified a specific time frame