If this chart overlay has it right, it’s about to get really ugly for bitcoin investors

Bitcoin took another hit Wednesday, making it back-to-back losses for a digital currency that soared above $3,000 just last month before dipping below $2,500. Despite the recent weakness, bitcoin is still up almost fourfold from a year ago as the crypto market continues to emerge from the shadows.

But critics—and there are many—believe the bubble’s about to pop.

The “Bullion Baron” blogger used this chart, which was highlighted as MarketWatch’s “chart of the day” in the daily “Need to Know” column, to show where he believes bitcoin

BTCUSD, +3.87%

 would fall on this classic bubble overlay.

It’s hard to argue the “media attention, enthusiasm, greed” arc, though crypto fans would certainly take issue with the “delusion” and “denial” levels.

As for Bullion Baron, he says he wouldn’t bet against it but “bitcoin’s going through the ‘return to normal’ stage with further downside to come.”

The SEC could potentially put pressure on crypto investors after it announced Tuesday that it would clamp down on initial coin offerings, or ICOs, the unregulated fundraising method that helped fuel demand across the burgeoning crypto market.

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