Bitcoin’s latest price action has given bearish analysts more reason to argue that the cryptocurrency is still moving through a deeper correction. Bitcoin has fallen back to $70,000, and selling pressure is building after another failed attempt to hold higher levels. Crypto analyst Crypto Lens has warned that Bitcoin may still need one final move lower to $42,000 before a new bull run back to new all-time highs above $126,000 can begin.

Bitcoin Is Still Inside A Bull Trap

Technical analysis of Bitcoin’s price action is predicting a bearish outlook during a tense moment for the cryptocurrency. Bitcoin has already corrected by over 15% since it reached $82,850 in early May, but technical analysis from crypto analyst Crypto Lens suggests that the downtrend might not end until Bitcoin breaks below $50,000.

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Notably, Crypto Lens’ chart presents the current Bitcoin setup as a cycle transition. The analyst’s roadmap begins from the idea that Bitcoin has already printed its major top near $126,199 in October 2025 and has since been moving through a series of failed recovery attempts.

The first major rejection on the chart is labeled as “Bull Trap #1,” which appeared after Bitcoin failed to hold the upper distribution zone close to the all-time high area between November 2025 and January 2026. From there, the price collapsed into a lower red range in February 2026.

Bitcoin then attempted another bounce in May, but Crypto Lens’ chart marks that move as “Bull Trap #2.” The analyst’s view is that this second trap is now close to completion, with the next expected move being a decline into a lower accumulation zone before the market can begin building toward the next major cycle.

Bitcoin Price Chart. Source: @crypto_lens_ On X

The $42,000 Crash Before The $126,000 Bull Run

The most interesting part of Crypto Lens’ analysis is that the bearish target does not cancel the bullish endgame. The chart shows Bitcoin falling into a blue accumulation range around $42,000 before gradually entering a re-accumulation phase and then a markup stage. Therefore, the analysis is effectively arguing that Bitcoin must go lower first because the current structure still lacks a proper bottom.

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The roadmap also gives the move a longer time horizon that extends outside 2026. The accumulation range around $42,000 is expected to stretch through the middle of 2026, and the re-accumulation box extends into early 2027. The markup phase then points to a recovery across 2027, with the final target breaking above the current all-time high line at $126,100.

At the time of writing, Bitcoin is trading at $69,920, down 3.9% over the past 24 hours after slipping below $70,000 from an intraday high of $72,929. The decline also comes amid news that Strategy sold a small portion of its Bitcoin holdings for the first time since December 2022.

Featured image created with Dall.E, chart from Tradingview.com

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Today’s sudden Bitcoin slide under $68,000 forced a rapid unwind across crypto derivatives markets, erasing nearly $400 million in leveraged positions in one hour as traders who had bet on further gains were caught by the move.

Data from CryptoSlate shows that Bitcoin fell more than 5%, dropping from $71,765 to $67,895, its lowest level since April. The decline pushed the largest digital asset through levels traders had been watching after several sessions of weakening momentum.

The move spread quickly across the broader market. Ethereum fell about 4% to $1,941, while XRP declined more than 3% to $1.24.

Solana, Dogecoin, and BNB also posted losses of more than 3% over the same period, underlining how quickly a Bitcoin-led correction can pressure the rest of the market.

Liquidations accelerate the decline

Coinglass data showed the drop triggered about $394 million in liquidations within one hour.

Long positions accounted for most of the damage, with traders betting on higher prices losing roughly $384 million. Short positions lost about $10.2 million.

Bitcoin traders absorbed the largest losses, with more than $209 million in positions liquidated. Ethereum followed with about $87 million in forced closures, while Solana and XRP traders lost about $27 million and $11 million, respectively.

The figures show how quickly leverage can turn a spot-market decline into a wider market event.

When prices fall through key levels, exchanges automatically close undercollateralized positions, adding sell pressure and forcing traders to exit at unfavorable prices. That process can deepen a move even when the original trigger is less clear.

Over 24 hours, total liquidations reached about $1.02 billion. Long positions accounted for roughly $902 million of that amount, showing that bullish positioning had become crowded before the selloff.

Why did Bitcoin price decline?

Market participants attributed the sudden shift in sentiment to a combination of technical breakdowns and an unexpected disclosure from Strategy (formerly MicroStrategy), the software firm known as the world’s largest corporate holder of Bitcoin.

On June 1, the Michael Saylor-led firm revealed it had sold 32 Bitcoin for $2.5 million to fund dividend obligations for its preferred stock.

While the nominal volume is statistically irrelevant relative to global daily spot turnover, the symbolic nature of the transaction weighed heavily on trading desks. This is because Strategy essentially wrote the playbook for aggressive, “never-sell” corporate accumulation.

So, its selling action marked a break from its strict holding ethos and introduced a layer of skepticism into the prevailing corporate treasury narrative.

As a result, the news pushed Bitcoin below several critical on-chain support metrics.

According to analytics provider Glassnode, the spot price descent to $68,800 meant Bitcoin had breached the short-term holder cost basis of $76,900, the true market mean of $78,000, and the active investors’ mean of $85,100.

Still, BTC’s price remains well above its aggregate realized price of $54,000.

Despite the localized panic, some industry executives cautioned against over-indexing on corporate portfolio adjustments.

Pierre Rochard, chief executive officer of the Bitcoin Bond company, dismissed the notion that a minor divestment by Strategy could single-handedly trigger a systemic market drop. Instead, Rochard pointed to broader capital reallocation trends.

According to him:

“The reality is that there is a massive parabolic spike in AI-related equities that is vacuuming up all excess liquidity.”

Furthermore, he emphasized that a resilient labor market and climbing energy prices have effectively killed near-term expectations for dovish interest rate cuts from the Federal Reserve.

Despite this unfavorable macroeconomic landscape, Rochard maintained that Bitcoin’s underlying network fundamentals remain fundamentally sound.

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