Doctor Profit confirms bear cycle as EMA50W loss and death cross expose structural weakness and drying market liquidity.
CryptoRank reports BTC $86,999 and ETH $2,842 as Fear and Greed Index drops to 19 with $209M liquidations.
QCP notes 30% BTC drop, rising Fed cut odds, and heavy derivatives positioning despite negative funding rates.
Analyst Doctor Profit has confirmed his stance that Bitcoin is in a bear cycle. He linked the move to sustained bearish divergence, collapsing liquidity and repeated historic patterns. The downturn unfolded across global exchanges, involving Bitcoin traders, institutions and liquidity providers as market structure deteriorated rapidly.
Structural Breakdowns Confirm Bear Pressure
According to Doctor Profit, Bitcoin lost its EMA50W for the first time this cycle, confirming deeper market weakness. Notably, he also noted a death cross that completed after bearish divergence surfaced during summer trading.
He added that banks now resemble Credit Suisse crash liquidity levels, while repo markets show zero usable funds. However, he pointed to continued retail participation, which still shows no capitulation signs.
He also reported extensive trading firm liquidations following October 10 price crash. Meanwhile, institutional liquidations followed the same timeline, further reinforcing market strain. He further cited Japan’s BOJ struggles and repo failures as risk amplifiers.
Market Metrics Reflect Extreme Fear Conditions
CryptoRank data showed Bitcoin trading at $86,999, a 0.8% rebound after steep declines. Ethereum followed with a 0.6% rise, trading near $2,842 during the same session. However, the Fear and Greed Index dropped to 19, marking extreme fear.
Notably, total crypto market capitalization is at $3.14 trillion despite increasing caution. Liquidations reached $209 million, reinforcing heavy volatility pressures. Meanwhile, traders remain cautious as liquidity flow remains restricted.
Derivatives Activity Signals Tactical Positioning
QCP Broadcast reported that Bitcoin fell 30% before showing limited recovery signs during weekend trading. Dovish Federal Reserve comments lifted December rate-cut expectations to 75%, however market caution persisted. Derivatives activity showed higher call interest than puts, with strike levels concentrated between $85,000 and $200,000.
Meanwhile, negative funding rates suggested leveraged long positions faced heavy unwinding. That shift reduced downside exposure but confirmed ongoing repositioning. Also, stock insiders maintained strong selling trends since August, adding further pressure across correlated financial sectors.
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