Analyst Forecasts a 'Bloody' Q2 for Bitcoin, Turns Completely Bearish

The pseudonymous analyst, Mr. Wall Street, forecasts a grim second quarter for Bitcoin amidst both market structure and macro conditions. His previous stance of short-term bullishness and mid-term bearishness has now fully shifted to bearish across all timeframes. He suggests that the recent 27% rally was a liquidity creation move by market makers for a larger downside move. He anticipates a potential Bitcoin drop to $40,000-$45,000, supported by the large amount of liquidity built up below the current price. Ongoing geopolitical risks, particularly a possible escalation between the United States and Iran, could also contribute to this bearish outlook. João Wedson, founder of Alphractal, concurs, flagging reduced network activity and warning traders against chasing upward price movements during a bearish market.