Bitcoin $BTC has once again become the center of attention as investors debate whether the market has already formed a bottom. While many buyers entered around the $70,000 level believing they caught the low, market analysts say the real bottom is likely still ahead.

According to a veteran crypto trader who previously called Bitcoin’s market top near $126,000, true market bottoms do not form in a single move. Instead, they develop through a series of psychological phases that take time to complete.

The Psychology Behind a Market Bottom

Analysts explain that Bitcoin typically forms a cycle low through several emotional stages among traders and investors.

1) Panic and Capitulation

This phase is marked by aggressive selling pressure. Fear dominates the market, forced liquidations increase, and headlines such as “Crypto is Dead” become common across social media and news platforms.

Historically, this period lasts about two to three weeks. Market observers believe Bitcoin has already passed through this stage.

2) Anger Phase (Bull Trap Setup)

After capitulation, Bitcoin often experiences a 20% to 50% relief rally. This bounce creates the illusion that the bottom is already in.

Investors who missed the initial drop rush back in, driven by FOMO. However, the rally usually fails, price turns lower again, and late buyers are stopped out. During this phase, traders begin to distrust market bounces and grow frustrated with price action.

Bitcoin is currently moving toward this stage, analysts suggest.

3) Depression Phase

The depression phase is the most exhausting part of the cycle. Instead of a sharp crash, price slowly bleeds lower or trades sideways for weeks.

Volume dries up, volatility drops, and the market feels boring and hopeless. Even strong holders begin to question their positions, while weaker participants exit completely. This phase typically ends with one final drop followed by a sharp bounce that signals the real bottom.

The Most Common Investor Mistake

Many investors assume capitulation equals the bottom. But experienced traders disagree.

Capitulation without a depression phase usually produces a fake bottom.

This pattern has repeated across multiple crypto cycles.

Bitcoin’s Current Market Structure

Based on recent price action:

The move from $60K to $70K was a relief rally, not confirmation of a bottom.

A push toward $80K–$90K could turn into a bull trap, increasing the risk of another decline below $65K.

If Bitcoin moves $70K → $74K → gradually fades to $65K–$60K, it would signal entry into the Anger phase of the cycle.

Key Battle Zone

Analysts are watching the range between:

$60,000 – $74,000

How Bitcoin behaves inside this zone will likely determine the cycle’s true low.

Experience from Past Cycles

A trader active in crypto markets since 2015 noted that bottoms are not formed when fear is highest.

Instead, he said,

“Markets bottom when hope disappears.”

According to analysts, Bitcoin has not yet reached that point.

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