At any time when bitcoin corrects after a chronic rally, the overall query inside the cryptocurrency neighborhood is whether or not that is one other “wholesome” retracement in a bull market, or the development has modified utterly, and the bears are in full management.
The previous few months, although, don’t look like a daily correction. Bitcoin traded above $126,000 in early October earlier than it plunged to below $100,000 by the tip of the 12 months. Its spectacular begin to 2026 was shortly halted, and the asset plummeted to $60,000 final Friday, charting a 52% drop since its all-time excessive.
What’s maybe much more worrying is the truth that most different asset courses, together with the valuable metallic market, stored driving excessive throughout this time, charting consecutive new peaks.
As such, we determined to ask ChatGPT if it believes BTC is certainly in a bear market or whether or not that is one other ‘typical’ correction.
Is It a Bear Market?
The AI answer acknowledged the substantial crash in early February, indicating that it “represents a serious structural shift.”
“Importantly, the $60K zone was a former breakout degree through the 2025 rally, which now acts as important help.”
If the cryptocurrency finds a stable help and stabilizes at these ranges, because it has completed previously week, the transfer south may “resemble earlier 50% resets seen throughout sturdy cycles,” mentioned the AI. Nonetheless, a breakdown under these ranges may “strengthen the bear thesis considerably.”
In conclusion to this query, ChatGPT mentioned that BTC is certainly in a bear market, a minimum of by the definition of that phrase. The one factor that is still unsure is the magnitude and period.
The place Is the Backside?
OpenAI’s platform believes there’s a 35% likelihood that the underside was in at $60,000. Nonetheless, its almost definitely state of affairs envisions a minimum of another leg down that would drive the cryptocurrency to $50,000-$52,000.
“The $50K area represents a robust psychological degree and prior consolidation zone. A transfer right here would mark a roughly 60% drawdown from the all-time excessive, aligning with extra extreme however nonetheless cyclical corrections.”
ChatGPT additionally outlined two excessive instances, each of which it believes are extremely unlikely – a capitulation crash to $40,000-$45,000 or a full-on investor exodus to below $35,000. Nonetheless, it defined that each of those situations would require a large black swan occasion, similar to FTX’s collapse or a brand new battle.
Will Bitcoin Endure?
Regardless of which of the aforementioned situations materializes, ChatGPT stays constructive on bitcoin’s long-term potential. It reminded that the asset has skilled and survived far worse drawdowns of as much as 80% and even 90% in its early days.
“Probably the most practical backside vary at present sits between $50K and $60K, with a deeper flush towards the low-$40Ks potential if macro circumstances worsen. Nonetheless, bitcoin has proven excessive resiliency previously, and there’s not a lot proof to counsel in any other case now.”
The submit We Requested AI: Is Bitcoin Actually in a Bear Market and The place Is the Backside? appeared first on CryptoPotato.