Bitcoin Analyst Warns of $20K Crash Before $1M Rally

Bitcoin (BTC) may be approaching a short-term recovery, but renowned market analyst Alessio Rastani warns that the bigger risk is a multi-year bear market beginning in 2027.

Rastani believes Bitcoin could stage a temporary rally over the next three to six months before another major decline. He uses an Elliott Wave analysis from veteran market forecaster Robert Prechter, which suggests Bitcoin completed a five-wave advance around its $126,000 all-time high.

Prechter's interpretation produces an extremely bearish long-term target around $3,500, corresponding with Bitcoin's 2018 bear-market lows. However, Rastani doesn't expect such an extreme decline and sees $20,000-$25,000 as a more realistic downside target by the end of 2027.

Rastani notes that BTC is currently holding around a key 21-period quarterly exponential moving average, potentially providing the foundation for another short-to-medium-term recovery. The critical downside level is around $57,000, and if Bitcoin drops below it, Rastani believes 'brace for impact'.