Crypto analyst Tony Research warned on June 2 that Bitcoin's failure to hold the $70,000 zone marks a major shift. The breakdown ends a long-term ascending channel that held since the start of the year. Tony Research now expects a relief rally before a deeper plunge below $60,000.
Bitcoin breaks key channel, falls below Ichimoku Cloud
The move lower wasn't sudden. Before losing $70,000, Bitcoin corrected from the 0.618 Fibonacci level and the 200-day moving average. Then it broke the lower boundary of the ascending channel. Trading below the Ichimoku Cloud sealed the bearish view for Tony Research.
Relief rally to $74,000 first, then the real drop
Tony Research doesn't expect a straight line down. In the short term, Bitcoin could bounce from $67,000 to around $74,000. That's the relief rally. After that, the analyst predicts fresh lows below $60,000, targeting the $56,000 to $54,000 range.
'Foolish' to expect a bull market now, Tony says
Tony Research didn't mince words. Expecting a bull market at this stage is 'foolish,' the analyst stated. Investors should get ready for multiple short-term rebounds, even as the overall trend points lower. The rallies won't signal a reversal — they'll be sell opportunities.
Bitcoin's price action in the coming days will test the $67,000 level. If it holds, the relief rally could play out. If it breaks, the drop toward $54,000 accelerates.
