Cryptocurrency trader Michael XBT, who predicted bitcoin’s 2022 bottom area, has again warned of the possibility of an additional sharp fall in bitcoin.

The Crypto Basic, a blockchain media outlet, reported on Tuesday that Michael XBT said bitcoin has already fallen about 12 percent on a weekly basis, but the next downward phase could be more severe, reinforcing his bearish outlook.

In a post on X, formerly Twitter, he claimed bitcoin’s next drop could be very large. Michael XBT said, "This bitcoin dump is going to be disgusting," and added that if market weakness continues, his short positions could generate large profits. Bitcoin was trading in the mid-$60,000 range at the time, and was cited at about $66,500, down 4 percent on the day.

His key rationale was a support line on a long-term chart. Michael XBT referred to a lower trend line of a wedge formation that has persisted for more than 10 years, and said a clear breakdown could trigger liquidations similar to the market collapse seen after the 2022 FTX liquidation episode. He also said bitcoin has tested key support levels multiple times and that repeated retests weaken support. For the same reason, he said he would not bet that the support line will hold again.

He also continued to warn market participants. He said it is risky to maintain large cryptocurrency exposure if the support line ultimately breaks. In an earlier market update, he analysed that bitcoin is approaching the final resistance test zone of a bearish flag pattern, and that if buying interest does not regain control, a decline similar to the past could repeat. He added that a sell-off is now under way in the market.

He disclosed the performance of a leveraged short position as bitcoin slipped from about $75,000 to the $66,000 range. A shared screen showed a 20-times leveraged bitcoin short position posting a profit of more than 220 percent. The entry price was about $74,593 and the mark price was about $66,280.

Michael XBT’s remarks are drawing attention because of his track record. He became widely known after pointing to a bitcoin bottom near $15,000 in 2022, and he previously mentioned the possibility of reaching $100,000 even when market sentiment was extremely depressed. Bitcoin later rebounded from its low and did enter a six-figure price level.

He did not present a specific price level for how far bitcoin could fall. He also said judging direction is more important than setting a price target. He said he turned extremely bearish around $75,000 despite criticism from the crypto community, and said he had staked his reputation on it.

Not all market views are the same. Bitcoin bulls see the long-term uptrend as still intact, separate from a short-term correction. Bitcoin was cited as down 47 percent from its high of $126,200, but some investors interpret the current correction as an entry opportunity ahead of the next uptrend phase.

This forecast drew market attention because it was not just bearish remarks but also presented the possibility of a long-term support break and disclosed leveraged positions. The fact that bearish warnings and buy-the-dip views are clashing over the same price moves again shows bitcoin’s high volatility.

This next dump is going to be disgusting. Total destruction. My shorts will print so much money it will feel illegal. Strap in. https://t.co/ByPOAn5TP3