Bitcoin May Plummet to $40,000 Before New Bullish Cycle

Michael Terpin, an experienced investor and author of Bitcoin Supercycle, predicts that despite recent price fluctuations, the market may still face a significant correction before entering a new bullish cycle. According to his model of the 'Four Seasons of Bitcoin', built around the rhythm of halvings, BTC could retreat to between $40,000 and $50,000.

This projection is based on historical data, including the precedent of the 2021-2022 cycle, where the price hit its absolute low exactly one year after reaching a peak. Terpin believes that the market has not yet reached the ultimate stage of seller exhaustion and anticipates a 'final pain zone' likely to eject impatient investors.

The investor emphasizes that this correction phase is necessary for the market to rebuild solid foundations for the next cycle, which could lead to a significant upside potential. In his book Bitcoin Supercycle, Terpin predicted a drop of 60% to 70% from the peak, with his best estimate around 66%, or about $42,000.