Is Bitcoin Heading Towards A 50 Per Cent Correction? Experts Weigh In

Bitcoin has been trading above the $80,000 mark in recent days, with price movements keeping in alignment with the market sentiment. Some analysts have pointed to signs that the latest upward trend in the price of Bitcoin is now showing reduced momentum.

Bitcoin was traded at $80,777, down 0.45 per cent, while Ethereum at $2,288, down 2.09 per cent on May 12, 2026. The total crypto market capitalisation stood near $2.69 trillion, according to data from CoinMarketCap.

Analysts Flag Possible Correction In Bitcoin Price

Some analysts have said that Bitcoin could be heading towards a sharper correction, with one estimate pointing to a potential 50 per cent downside scenario.

A crypto analyst, Alejandro XBT, wrote on X (formerly Twitter) that Bitcoin may be nearing the end of a recent “dead cat bounce,” suggesting a potential move towards the 40,000 level in a broader downside scenario.

Another crypto analyst, Crypto Rover, posted on X a possible downside scenario for Bitcoin’s near-term set-up. He said that this week could mark a potential top for Bitcoin, citing historical cycle patterns and market behavior. He pointed to past post-halving periods where Bitcoin saw significant corrections, including declines of 65 per cent in 2014, 64 per cent in 2018, and 52 per cent in 2022, suggesting a similar pattern could emerge again.

He also highlighted factors such as a spike in open interest, expectations around a new Federal Reserve chair, and elevated equity market levels as potential triggers for a pullback

In another post on X, Crypto Rover said that Bitcoin has historically not recorded three consecutive bullish months during bear markets, suggesting that May could close in the red.

What Crypto Experts Say About Bitcoin’s Market Outlook

Market experts weighed in on Bitcoin’s recent volatility, focusing on structural trends rather than short-term price calls.

Prateek Gupta, head of business at Mudrex, said Bitcoin is in a phase of consolidation rather than collapse, with price action being driven by short-term macro factors that are not altering the broader structural outlook.

He added, “Bitcoin exchange-traded funds (ETFs) attracted $706 million last week, marking six consecutive weeks of positive institutional flows. That is not the behaviour of a market pricing in a 50 per cent crash,” adding that extreme downside levels are not the base case in the current set-up.

“Bitcoin has corrected by over 35 per cent, yet it has remained relatively stable above the $70,000 level, indicating underlying structural strength in the market. Unlike earlier cycles, this drawdown has been shallower, reflecting stronger institutional participation,” said Ashish Singhal, co-founder, CoinSwitch.

Singhal added that institutional flows and improving macro conditions continue to support the market, with Bitcoin increasingly behaving like a global macro asset sensitive to broader economic factors, while long and sharp corrections remain unlikely.

Overall, Bitcoin’s sentiment remains mixed, with near-term views divided across market participants. Experts say that the broader market structure continues to support the longer-term outlook even with the ongoing volatility.

FAQs

1. What is Bitcoin’s current price?

Bitcoin was trading around $80,777 as market sentiment remained mixed amid ongoing volatility.

2. Is Bitcoin expected to fall further?

Some analysts believe Bitcoin could face a deeper correction due to historical cycle trends and macroeconomic risks.

3. What are experts saying about Bitcoin’s outlook?

Experts say institutional inflows and continued ETF demand are helping support Bitcoin’s broader market stability.