Market analyst Leshka.eth has joined the bearish camp, pointing to a classic reversal pattern that could spell a steep correction for the world's largest cryptocurrency.
What to know
- Analyst Leshka.eth projects a 41% decline for Bitcoin based on a completed Head & Shoulders pattern.
- Bitcoin has dropped below $60,000 after multiple failures to break above $82,000 over the past month.
- The Head & Shoulders formation is a negative chart pattern that signals a potential trend reversal — typically from bullish to bearish.
- Trading activity shows derivatives traders returning after an eight-month deleveraging phase, with Binance futures open interest rising above its 180-day moving average.
- Spot demand for Bitcoin is contracting at the fastest pace in recent history, raising concerns about reliance on leveraged futures.
- Other voices, like Mark Cuban, have also soured on Bitcoin as a hedge, though the analyst community remains deeply divided on the next move.
The Pattern That Has Traders on Edge
The Head & Shoulders pattern is one of the most recognizable bearish formations in technical analysis. According to the analysis shared by Leshka.eth, Bitcoin has completed this pattern, which points to a potential 41% drop from current levels. The cryptocurrency has been unable to sustain upside momentum after multiple rejections at the $82,000 price level over the last month. The recent dip below $60,000 confirms the breakdown of support, adding technical weight to the bearish call.
A Market Split in Two
Not everyone is convinced that a crash is imminent. The market narrative remains fragmented. On one hand, the Head & Shoulders pattern is widely respected for its predictive power. On the other, some analysts argue that deleveraging cycles often precede the next leg higher. Data from CryptoQuant shows that Bitcoin futures open interest on Binance has climbed back above its 180-day moving average — a sign that speculative interest is returning after an eight-month contraction. However, this renewed leverage comes at a time when spot demand is shrinking at the fastest rate on record.
The Deleveraging Aftermath
The eight-month deleveraging phase was one of the longest in recent years. Derivatives traders who stayed on the sidelines are now re-entering, but the market environment remains fragile. In the past week alone, crypto longs suffered $871 million in liquidations, partly triggered by geopolitical jitters over tariffs. The rapid contraction in spot demand suggests that the buying pressure is coming predominantly from leveraged futures, which can amplify moves in both directions. This setup raises the stakes for the Head & Shoulders thesis.
Why the Pattern Matters Now
A 41% decline would take Bitcoin well below psychologically important levels. The pattern’s target, if confirmed, implies a price that has not been seen in over a year. Beyond the numbers, the psychological impact of such a drop could rattle confidence across the entire crypto ecosystem. The technical breakdown, combined with weakening spot demand and renewed but potentially risky leverage, paints a cautionary picture.
Looking Ahead
The coming weeks will be decisive for Bitcoin. If the Head & Shoulders pattern plays out fully, the downside could be severe. Conversely, a reclaim of the $60,000 level or a new push toward $82,000 would invalidate the bearish setup. The division among analysts means both scenarios are being actively debated. For now, the chart is speaking a clear — and bearish — language.
