A prominent crypto trader known as Doctor Profit believes Bitcoin may rise into the 83,000 to 87,000 dollar range before experiencing a steep decline. He warns that the move could catch both bullish and bearish traders off guard in what he describes as a highly aggressive market shakeout.
Bull Trap Scenario Takes Shape
In a recent market update shared on X, Doctor Profit explained that he has been riding a long position since 71,000 dollars and is now preparing to lock in profits while increasing his short exposure. He plans to build most of his short positions between 83,000 and 85,000 dollars, with a large concentration of orders already placed in that zone.
He still considers the broader range between 79,000 and 84,000 dollars as an attractive area for short positions. However, he expects Bitcoin to move above 83,000 dollars first, which led him to adjust his strategy accordingly.
The trader also identified a resistance level near 87,700 dollars as a possible upper extension before a larger downward move begins. His longer term outlook remains bearish, with targets below 50,000 dollars.
According to him, traders who are opening short positions too early are unintentionally pushing prices higher, as their liquidations add fuel to the upward move before the reversal takes place.
Macro Factors and Market Outlook
Doctor Profit also pointed to the upcoming FOMC meeting as a key event to watch. While he does not expect any immediate changes to interest rates, he noted that it could be the final press conference led by Jerome Powell, with Kevin Warsh seen as a potential successor. This transition could influence expectations around future rate cuts, though he remains skeptical that a more accommodative policy shift will happen soon.
Mixed Signals from Market Analysts
Market sentiment has shifted rapidly in recent days. Data from Santiment showed a move from strong pessimism earlier in the week to heightened fear of missing out as Bitcoin climbed back above 78,000 dollars. The firm views this surge in optimism as a warning sign rather than a confirmation of continued gains.
Other analysts have presented differing outlooks. Ali Martinez highlighted 96,000 dollars as the next major resistance level but cautioned that a drop below key support could send Bitcoin toward 55,000 dollars.
Similarly, EGRAG CRYPTO identified 55,000 dollars as a downside scenario while also outlining a path to new all time highs if Bitcoin regains strength above 90,000 dollars.
Meanwhile, Michaël van de Poppe suggested that a breakout between 84,000 and 87,000 dollars could signal the end of the bear market, with a potential move toward 100,000 dollars in a more bullish scenario.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
