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Popular cryptocurrency trader Keith Wareing warned Bitcoin (BTC) traders about a critical bearish scenario brewing in the market.

The trader spotted Bitcoin inside an inverse cup-and-handle pattern earlier this month, a bearish structure that forms during a price wave downward, followed by a stabilizing period. The technical design typically leads the price lower by as much as the size of the previous decline.

Bitcoin topped near $65,000 in mid-April before reversing to the downside in later sessions. The cryptocurrency crashed to as low as $28,800 on June 22 after attempting to keep prices above $30,000 repeatedly. It successfully did so but fell short of extending its bullish reversal momentum after facing comparatively higher selling pressure in the $35,000–$36,000 range.

The pattern’s handle part appeared like it is nearing exhaustion, prompting Wareing to say that Bitcoin’s price would fluctuate inside the structure for another three to four weeks. After that, the cryptocurrency would rally lower, insomuch that it could hit $24,000.

“If the handle breaks down, expect 24k -29k to be the new range. […] 3-4 more weeks of range-bound imo,” Wareing wrote in an update on Friday.

Negative outlook throughout riskier assets
Bearish warnings for Bitcoin picked up momentum in the weeks after global regulators increased their crackdown against the cryptocurrency sector. For example, in China, the central bank effectively banned all forms of crypto-related activities, including mining, one of the few surviving crypto industries following Beijing’s restriction on cryptocurrency trading in 2018.

Meanwhile, Binance, the world’s leading cryptocurrency exchange by volume, came under pressure from regulators in the United Kingdom, Thailand, Canada, Japan, and Cayman Islands over its sprawling crypto operations.

The U.K.’s Financial Conduct Authority banned Binance from regulated financial activities last month. That prompted Barclays, Faster Payments and Santander to block its banking customers from accessing Binance.

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