Bitcoin Weekly Forecast: BTC likely to correct to $50,000 soon
Source Fxstreet
- Bitcoin price has formed a potential top signal that forecasts a sell-off.
- The weekly chart also points to a bearish divergence, which adds credence to the bearish outlook.
- Investors can expect BTC to consolidate between the $52,062 to $45,160 levels.
- Invalidation of the correction thesis will occur on the flip of the $52,062 resistance into a support floor.
Bitcoin (BTC) price action over the past eight days signals a lack of volatility and reduced liquidity. This coiling up could lead to a steep correction in the near future for BTC.
Also read: Bitcoin price eyes $48,000 as European Central Bank tears down at BTC after spot ETF approval
Bitcoin price flashes a sell signal
Bitcoin price action has produced the same local top formation over the last three months. This setup has a few key identifying factors:
- BTC rallies violently to the upside.
- This impressive rally is followed by a sideways movement that leads to an equal high formation.
- The consolidation here is also characterized by blow-off tops or swing failure patterns.
- Following the blow-off tops, the range tightens and is followed by a volatile move to the downside.
Between January 23 and February 23, Bitcoin price has rallied violently to the upside, forming relatively equal highs with bearish swing failure patterns. If history rhymes, then all that’s left to happen is for a steep correction to trigger.
Also read: Ethereum price risks decline as increasing exchange supply raises chances of profit taking
BTC/USD 4-hour chart
The weekly chart for Bitcoin price also adds credence to this outlook which shows a higher high formation that does not conform with Relative Strength Index’s (RSI) lower highs. This divergence is a bearish sign, which aligns well with the four-hour chart’s forecast.
The key levels for a correction include:
- Support located at the $50,000 psychological level, in an optimistic scenario.
- From a weekly perspective, however, BTC could retest the upper limit of the imbalance, extending from $47,712 to $43,890.
- A rather bearish outlook would see BTC sweep $41,395.
BTC/USDT 1-week chart
Both the short-term and higher-time frame charts are hinting at bearish outlooks, which makes sense after a 37% rally in Bitcoin price in just 28 days. Therefore, investors should note that this retracement will be healthy in keeping the uptrend alive.
However, should Bitcoin price breach the $41,395 weekly support level and flip it into a resistance level, it would invalidate the high-time frame bullish thesis that has kept BTC on an uptrend since January 2023.
In such a case, BTC could revisit the $37,893 and $32,843 support levels, depending on the selling pressure at the time.
Also read: XRP price plunges as Kraken cites SEC v. Ripple lawsuit in its legal battle against the regulator
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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Bitcoin briefly loses 2025 gains as crypto plunges over the weekend.Bitcoin experienced a sharp decline this weekend, briefly erasing its 2025 gains and dipping below its year-opening value of $93,507. The cryptocurrency fell to a low of $93,029 on Sunday, representing a 25% drop from its all-time high in October. Although it has rebounded slightly to around $94,209, the pressures on the market remain significant.
The downturn occurred despite the reopening of the U.S. government on Thursday, which many had hoped would provide essential support for crypto markets. This year initially appeared promising for cryptocurrencies, particularly after the inauguration of President Donald Trump, who has established the most pro-crypto administration thus far. However, ongoing political tensions—including Trump's tariff strategies and the recent government shutdown, lasting a historic 43 days—have contributed to several rapid price pullbacks for Bitcoin throughout the year.
Market dynamics are also being influenced by Bitcoin whales—investors holding large amounts of Bitcoin—who have been offloading portions of their assets, consequently stalling price rallies even as positive regulatory developments emerge. Despite these sell-offs, analysts from Glassnode argue that this behavior aligns with typical patterns seen among long-term investors during the concluding stages of bull markets, suggesting it is not indicative of a mass exodus.
Notably, Bitcoin is not alone in its struggles, as Ethereum and Solana have also recorded declines of 7.95% and 28.3%, respectively, since the start of the year, while numerous altcoins have faced even steeper losses.
Looking ahead, questions linger regarding the viability of the four-year cycle thesis, particularly given the increasing institutional support and regulatory frameworks now in place in the crypto landscape. Matt Hougan, chief investment officer at Bitwise, remains optimistic, suggesting a potential Bitcoin resurgence in 2026 driven by the “debasement trade” thesis and a broader trend toward increased adoption of stablecoins, tokenization, and decentralized finance. Hougan emphasized the soundness of the underlying fundamentals, pointing to a positive outlook for the sector in the longer term.
Bitcoin experienced a sharp decline this weekend, briefly erasing its 2025 gains and dipping below its year-opening value of $93,507. The cryptocurrency fell to a low of $93,029 on Sunday, representing a 25% drop from its all-time high in October. Although it has rebounded slightly to around $94,209, the pressures on the market remain significant.
The downturn occurred despite the reopening of the U.S. government on Thursday, which many had hoped would provide essential support for crypto markets. This year initially appeared promising for cryptocurrencies, particularly after the inauguration of President Donald Trump, who has established the most pro-crypto administration thus far. However, ongoing political tensions—including Trump's tariff strategies and the recent government shutdown, lasting a historic 43 days—have contributed to several rapid price pullbacks for Bitcoin throughout the year.
Market dynamics are also being influenced by Bitcoin whales—investors holding large amounts of Bitcoin—who have been offloading portions of their assets, consequently stalling price rallies even as positive regulatory developments emerge. Despite these sell-offs, analysts from Glassnode argue that this behavior aligns with typical patterns seen among long-term investors during the concluding stages of bull markets, suggesting it is not indicative of a mass exodus.
Notably, Bitcoin is not alone in its struggles, as Ethereum and Solana have also recorded declines of 7.95% and 28.3%, respectively, since the start of the year, while numerous altcoins have faced even steeper losses.
Looking ahead, questions linger regarding the viability of the four-year cycle thesis, particularly given the increasing institutional support and regulatory frameworks now in place in the crypto landscape. Matt Hougan, chief investment officer at Bitwise, remains optimistic, suggesting a potential Bitcoin resurgence in 2026 driven by the “debasement trade” thesis and a broader trend toward increased adoption of stablecoins, tokenization, and decentralized finance. Hougan emphasized the soundness of the underlying fundamentals, pointing to a positive outlook for the sector in the longer term.
Gold price (XAU/USD) extends the decline to around $4,030 during the early Asian session on Tuesday. The precious metal edges lower as traders dialed back expectations of a US interest rate cut next month.
Ethereum is trading near $3,150 and just 8% above a key $2,895 long-term holders’ cost basis, with on-chain flows, macro uncertainty and support around $3,000–$2,800 all shaping what comes next for ETH.
