Before the start of the parabolic run, Bitcoin analysts predicted that the price of BTC would drop to $50K.

Bitcoin's failure to break above resistance levels has led to a “double-high price pattern” that could lead to a “severe decline” to $50,000, according to a crypto analyst.

10x Research founder Markus Thielen explained in an analyst note on June 24 that Bitcoin (BTC) technically appears to be following a two-level pattern and is currently testing the support level.

A double top pattern is formed when the price reaches two similar peaks and waits for support above the common line known as “the neck” with a slight twist. This pattern is resolved when the price breaks below the neckline, which can fall by an amount equal to the distance between the highs and the neckline.

“Bitcoin may move from the current trading range (60,000-70,000) to a higher formation, which may lead to a major decline.”

This should be our base until the charting is rejected. This formation will easily break down to $50,000—if not $45,000,” says Thielen, adding, “As we've seen over the past three months, range trading is often a complex phase characterized by multiple false breakouts.

“High-level formations have historically put average retail investors at risk, and many altcoins are experiencing significant drops.”

Thielen added that despite the positive impact of the US elections and the Consumer Price Index (CPI) at the end of this year, the price may still face a “significant correction”.

Prominent crypto traders are speculating on the price of Bitcoin after the reduction event on April 20. This event reduced Bitcoin mining rewards by 50% from 6.25 BTC to 3.125 BTC.

Crypto trader Jelle says Bitcoin's price action is still playing out “similarly” after the 2016 half-cycle and is “cutting past the previous cycle's highs.”

In a June 24 post on X, Jelle said, “The food that is currently falling in price is increasing over time,” adding that it is part of the “swing effects.”

“Either it's over or we're going down.”

Crypto trader Rect Capital believes there is huge potential for further upside in the short term. In a June 24 post, he said the market is roughly 40% in a “bull market” phase.

This suggests that the recent drop in BTC price below $60,000 will give buyers an opportunity to buy more on the dip before Bitcoin goes into a “parabolic uptrend”.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.