Veteran trader Michael XBT is doubling down on his bearish outlook for Bitcoin, even after it has already fallen 12%.
He argues that a major breakdown could trigger a “total destruction” across the market.
In a series of posts on X, the trader said Bitcoin’s next move lower could be severe. He claimed his short positions could generate massive gains if market weakness continues. In his words:
“This next Bitcoin dump is going to be disgusting. My shorts will print so much money it will feel illegal.”
The comments come as Bitcoin trades in the mid-$60,000 range. The asset has dropped 4% over the past day and is currently trading around $66,500. On the weekly timeframe, $BTC is down 12%.
Key Points
- Veteran trader Michael XBT warns Bitcoin could face a major breakdown, calling the next dump “disgusting.”
- He says a decade-long wedge pattern is nearing a critical support test that could trigger heavy selling.
- Michael points to bear flag resistance and believes ongoing weakness signals capitulation is underway.
- Despite Bitcoin falling 47% from its peak, many bulls still view the pullback as a long-term buying opportunity.
Incoming 10-Year Wedge Breakdown
Michael shared a long-term Bitcoin chart highlighting a decade-long wedge formation. According to him, a decisive break below the lower trendline could trigger a liquidation event similar to the market collapse that followed the FTX bankruptcy in 2022.
He argued that Bitcoin has repeatedly tested a critical support zone. In his view, each retest weakens that support. As a result, he said he would not bet on the support line holding again.
The trader also warned investors against remaining heavily exposed if that support eventually fails.
$BTC Bear Flag Resistance
In an earlier market update, Michael said Bitcoin was approaching a final test of bear-flag resistance. He argued that the pattern resembles previous bearish continuation setups. If buyers fail to regain control, he believes history could repeat itself.
The trader noted that the decline had already begun, telling his followers that “capitulation” was underway.
Profitable Short Position
As Bitcoin fell from roughly $75,000 toward the $66,000 area, Michael highlighted a leveraged short position that benefited from the move. He shared a screenshot showing a 20x Bitcoin short posting gains of more than 220%. The position had an entry price near $74,593 and a mark price around $66,280.
Responding to a user who praised his conviction around the $75,000 level, Michael said he had risked his reputation by turning “max bearish” despite criticism from the crypto community.
He acknowledged changing his market bias multiple times. However, he argued that correctly identifying the broader trend is what matters most.
I risked my reputation by flipping MAX BEARISH at 75k.
I received more hate than ever before for simply telling the truth.
If I was wrong, I would’ve been cooked.
Sure, I flipped bias a few times, but I caught the big move in the end.
That’s all I care about. https://t.co/sjgQtnchyx
— Crypto Michael (@MichaelXBT) June 2, 2026
Reputation Built on Major Bitcoin Calls
Michael’s warnings have drawn attention because of his history of making high-profile Bitcoin calls.
The trader became widely known after identifying Bitcoin’s 2022 bottom near $15,000. At the time, he also predicted a future move to $100,000 when market sentiment was deeply negative.
That forecast eventually played out. Bitcoin’s price recovered from its lows and later reached six-figure territory.
While Michael remains convinced that another sharp decline is coming, he has remained silent on how low Bitcoin could fall.
Regardless of the short-term direction, Bitcoin bulls continue to view the long-term trend as intact. Bitcoin is now down 47% from its peak of $126,200, and many investors see the pullback as a favorable entry point ahead of the next uptrend.
Leave a Reply
You must be logged in to post a comment.