Bitcoin's May recovery has reversed hard. The cryptocurrency slipped below $71,000 this week, breaking a descending channel and — more ominously — an ascending channel at the same time. That's a double breakdown, and one analyst tracking the pattern says the crash is just getting started.
The double breakdown
Analyst Xanrox flagged the move as extremely bearish. Two technical structures failing simultaneously usually means sellers are in control, not a short-term dip. Bitcoin is now in a brutal bear market, Xanrox said, noting the price action confirms the recent bullish optimism was premature.
Where the floor might be
Xanrox sees meaningful support clustered around $60,000 — but doesn't expect that level to hold. The next target is $48,000, with a strong possibility of a slide all the way to $40,000 or even $30,000. That's a potential 40% drop from current levels and would put Bitcoin deep into bear territory not seen since late 2024.
Outflows and the bank factor
Major outflows are happening across crypto markets, and Bitcoin is taking the worst of it. The bear market has pushed users toward cash, the analyst noted, as holding positions just means watching losses mount.
Xanrox also pointed a finger at banks. The argument: institutions are controlling Bitcoin price through futures selling and could knock it down 20% in a single day if they choose. That kind of leverage-driven selling has happened before, and there's nothing stopping it from happening again.
The fight at $60,000
It isn't all one-sided. Bulls are expected to put up a major fight at $60,000, which marks the cycle's swing low. A bounce there could slow the selloff, but it wouldn't change the broader picture unless buying volume picks up fast.
The question now is how long $60,000 holds — and whether that level becomes the next breakdown point. If Xanrox's read is right, that test comes sooner than most expect.
