According to crypto analyst Crypto Patel, Bitcoin’s higher-timeframe structure is in an interesting position. He believes the cryptocurrency has officially entered bearish territory after breaking a long-term support level around $107,000.
Technical analysis of the weekly chart shows Bitcoin is now in this bearish phase, with a projection for a deeper correction potentially down to $35,000 by 2026. This outlook is based on Fibonacci retracement levels that could guide Bitcoin’s next major price move.
Bearish Territory Began After Breakdown Below $107,000
This analysis is based on the premise that Bitcoin entered bearish territory after its price broke below a major ascending trendline around $107,000. Visible on the weekly chart shared by Patel, this trendline acted as dynamic support throughout much of the 2023-2025 rally. It connected a series of higher lows and helped sustain the broader bullish structure that culminated in Bitcoin reaching a peak of $126,080.
The chart marks the breakdown zone with a red circle, indicating where the price decisively lost that upward support. Following the breach, Bitcoin’s momentum shifted, and it began forming lower highs. Patel states that this trendline was the critical threshold, and losing it marked Bitcoin’s official entry into bearish territory. The market now likely needs a healthy correction before the next upward leg.
Fibonacci Levels Point to $44,000 and $35,000
Bitcoin has been on a downward trajectory since the beginning of the year, and the projection is for this to continue until it finds a bottom around $35,000. This outlook is informed by the scale of corrections in previous cycles.
For example, the 2018 bear market saw an approximately 84% decline from peak to trough. Similarly, the 2022 correction erased roughly 77% from its cycle high. In both cases, these deep retracements preceded the next major rally.
From this historical perspective, a move below $50,000 from current levels would not be unprecedented. Instead, it would align with Bitcoin’s established cycle behavior.
The projected downside targets come from Fibonacci retracement levels drawn from the October 2025 all-time high. Two levels are particularly notable on the chart.
The first is the 0.5 Fibonacci retracement level, currently around $44,000. This mid-cycle pullback level has historically attracted strong buying interest during corrections, making it a potential stabilization point if selling pressure eases.
If Bitcoin fails to find support near $44,000, the next key level is the 0.618 Fibonacci retracement around $35,000. The expectation is that Bitcoin could eventually bottom at $35,000 even if it doesn’t hold above $44,000.
At the time of writing, Bitcoin is trading at $63,740, down 6% over the past 24 hours.
Frequently Asked Questions
Frequently Asked Questions About Bitcoins Bear Market and Potential Drop to 35000
BeginnerLevel Questions
1 What does it mean that Bitcoin is in a bear market
A bear market is a period of sustained price decline typically defined as a drop of 20 or more from recent highs accompanied by widespread pessimism For Bitcoin it means the overall trend is currently downward
2 Why are analysts saying Bitcoin could fall to 35000
Analysts are looking at technical charts which study past price patterns and trading volume They identify key support levelsprices where buying has historically stepped in 35000 is seen as a major support level if the current price breaks below weaker supports a fall toward that level becomes more likely
3 Should I panic and sell all my Bitcoin right now
Panic selling is rarely a good strategy Market cycles are normal Instead of reacting emotionally its better to review your original investment goals risk tolerance and consider a longterm perspective if that aligns with your plan
4 What causes a bear market for Bitcoin
Bear markets can be triggered by a combination of factors large investors selling negative regulatory news a downturn in the broader economy reduced risk appetite from institutions or simply the natural coolingoff period after a major price rally
5 Is this the end of Bitcoin
Highly unlikely Bitcoin has experienced numerous bear markets throughout its history Each has been followed by a new cycle Volatility and cyclical downturns are inherent characteristics of its market
Advanced Practical Questions
6 What is a support level on a chart and why is 35000 important
A support level is a price zone where buying demand has historically been strong enough to halt or reverse a decline 35000 is a psychologically important round number and was a significant consolidation area in early 2024 making it a key level chart watchers are monitoring
7 What technical indicators are pointing to further downside
Analysts might point to indicators like
Breaking below key moving averages
Lower highs and lower lows forming on the chart