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“Analyst Doubles Down on Bitcoin Downside Warning After Fresh Technical Breakdown” 🚨

Michael Purves, CEO of Tallbacken Capital Advisors, is reinforcing his bearish outlook on bitcoin after identifying another major technical breakdown in the cryptocurrency’s price structure. Purves, who warned of significant downside risk for bitcoin in late November, says recent market action has only strengthened his conviction.

According to Purves, November marked the sixth time bitcoin triggered a monthly moving average convergence/divergence (MACD) sell signal — a pattern that has historically been followed by declines of roughly 60%. Since then, bitcoin has continued to weaken, recently falling to its lowest level since the trading session following President Trump’s 2024 election victory.

Purves also highlighted the completion of a bearish head-and-shoulders pattern, a classic technical formation that often signals trend reversals. In this case, the early-2025 peak near $110,000 formed the left shoulder, bitcoin’s all-time high marked the head, and the $98,000 level created the right shoulder. The neckline of the pattern sits around $76,000 — a level Purves considers critical.

“What’s particularly interesting about the neckline is that this $76,000 level is also Strategy’s (MSTR) average cost of acquisition,” Purves noted. He warned that a sustained break below this level could trigger forced deleveraging across the bitcoin market, potentially accelerating downside pressure.

However, Strategy has taken steps to mitigate this risk. In December, the firm announced it had built a $1.44 billion U.S. dollar reserve to cover interest and dividend obligations, a move designed to avoid forced asset sales during periods of market stress.

With key technical levels now in focus, bitcoin traders are closely watching whether support near $76,000 can hold — or if another wave of selling is on the horizon.