A well known market analyst has described Bitcoin’s recent rebound as a potential bull trap and cautioned that a deeper correction may be on the horizon as broader market conditions weaken.
Rising tensions in the Middle East are adding pressure to global financial markets. At the same time, Bitcoin is facing renewed fears of a significant downturn, with investors preparing for further declines across risk sensitive assets.
The warning comes as Bitcoin continues to show weakness after falling over the weekend and dropping below 68,000 dollars on Monday.
Concerns Over a Major Downturn
A widely followed analyst known as Doctor Profit has suggested that Bitcoin could experience a decline even more severe than the market crash during the COVID-19 market crash, often referred to as Black Thursday. During that period in March 2020, Bitcoin lost more than half its value in a single day, falling from around 8,000 dollars to nearly 3,750 dollars amid widespread panic in global markets.
Current price trends appear to reflect similar pressure, with Bitcoin trading more than 46 percent below its all time high reached last year. The analyst warned that market participants should be prepared for a major downturn affecting not only crypto but also traditional assets.
This outlook follows comments made a day earlier, where Doctor Profit maintained that Bitcoin remains within a broader bearish trend.
Signs of Further Weakness
According to the analyst, Bitcoin has been moving within a wide range between 57,000 dollars and 87,000 dollars after dropping from the 115,000 to 125,000 dollar region down to around 60,000 dollars. Within this structure, the recent rise to 76,000 dollars followed by a sharp fall below 68,000 dollars was identified as a bull trap that could precede further declines.
He highlighted the 79,000 to 84,000 dollar zone as a key resistance and liquidity area where traders may look to open additional short positions.
In the near term, Bitcoin lacks a clear directional trend, contributing to ongoing sideways movement. However, the broader pattern still suggests another downward move, potentially pushing the price back toward the 57,000 to 60,000 dollar range. Short term rallies are viewed as liquidity driven moves that temporarily push prices higher before continuing downward.
Although brief upward movements are still possible, the analyst sees them as opportunities to increase bearish positions rather than signals of a sustained recovery.
Doctor Profit also pointed to macroeconomic factors shaping the current risk environment. These include delayed expectations for interest rate cuts, rising inflation signals, and increasing liquidity pressure, all of which are contributing to a more cautious market outlook.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
