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Is the worst yet to come for Bitcoin? This is what analysts say📉
According to an analysis by Doctor Profit, the market is now in Stage 4 of the cycle, following a sequence marked by liquidity dynamics, leveraged positioning, and repeated patterns of investor psychology.
The analyst explained that Stage 1 developed during the Bitcoin rally between $115,000 and $125,000, a period of euphoria, extreme buying appetite, aggressive leverage, and the widespread feeling that downside risk had disappeared.
This phase often ends with lateral consolidation at high levels or brief spikes upward, hiding an underlying fragility. Stage 2 began when Bitcoin broke below the psychological level of $100,000, causing stress among short-term investors and leveraged traders.
The movement was described as fast and deliberate, to limit reaction time. As an example, the crash on October 10 was cited, which would have triggered the largest liquidation event in crypto history in a matter of hours.
Then came Stage 3, the fastest and most severe, which confirmed the bear market with an extreme drop of 38% from the all-time high. Doctor Profit described it as the most brutal: panic and depression, with investors unable to hedge or reduce risk in time.
In that phase, $BTC lost 50% of its capitalization due to an accelerated "mechanical readjustment." For Doctor Profit, Stage 4 is a long lateral movement with low volatility but high psychological wear, and he considers it an exhausting phase, not violent, with the price oscillating in a defined range that allows market makers to generate liquidity on both sides while eroding participants.
He added that a transition to Stage 5 would be more likely in a few months, not immediately, although short-term rebounds could occur in the range of $57,000-$60,000.
{future}(BTCUSDT)
According to an analysis by Doctor Profit, the market is now in Stage 4 of the cycle, following a sequence marked by liquidity dynamics, leveraged positioning, and repeated patterns of investor psychology.
The analyst explained that Stage 1 developed during the Bitcoin rally between $115,000 and $125,000, a period of euphoria, extreme buying appetite, aggressive leverage, and the widespread feeling that downside risk had disappeared.
This phase often ends with lateral consolidation at high levels or brief spikes upward, hiding an underlying fragility. Stage 2 began when Bitcoin broke below the psychological level of $100,000, causing stress among short-term investors and leveraged traders.
The movement was described as fast and deliberate, to limit reaction time. As an example, the crash on October 10 was cited, which would have triggered the largest liquidation event in crypto history in a matter of hours.
Then came Stage 3, the fastest and most severe, which confirmed the bear market with an extreme drop of 38% from the all-time high. Doctor Profit described it as the most brutal: panic and depression, with investors unable to hedge or reduce risk in time.
In that phase, $BTC lost 50% of its capitalization due to an accelerated "mechanical readjustment." For Doctor Profit, Stage 4 is a long lateral movement with low volatility but high psychological wear, and he considers it an exhausting phase, not violent, with the price oscillating in a defined range that allows market makers to generate liquidity on both sides while eroding participants.
He added that a transition to Stage 5 would be more likely in a few months, not immediately, although short-term rebounds could occur in the range of $57,000-$60,000.
{future}(BTCUSDT)