- Bitcoin faces a major correction as investors reassess market trends, with historical dips of 40-50% within bull cycles.
- Technical signals, including a head-and-shoulders pattern and resistance at $88,500, point to further downside risks.
- Doctor Profit shifts strategy, securing gains and entering shorts, anticipating a potential drop to $50,000-$60,000 before recovery.
Doctor Profit, a well-known crypto analyst, believes Bitcoin is due for a correction. He asserts that Bitcoin historically faces a 40-50% dip within a bull cycle. Additionally, he emphasizes that the recent news about the Strategic Bitcoin Reserve is already priced in. The unexpected timing of Trump’s signature on the reserve initiative accelerated this correction, making it a key exit signal for experienced traders.
Bitcoin’s Technical Breakdown Signals Further Decline
Besides fundamental shifts, Bitcoin’s technical structure also indicates downside momentum. The cryptocurrency recently faced resistance near $88,500, forming a head-and-shoulders pattern. Consequently, breaking below the neckline support at $86,500 confirmed a bearish reversal. The 200-period moving average remains above the price, reinforcing downward pressure.
Moreover, increased selling pressure has led to multiple rejections at local highs, confirming resistance. Key support now lies between $82,000 and $83,000. If selling pressure persists, Bitcoin could test this zone. A breakdown below this level would indicate further losses, while reclaiming previous resistance levels is essential for a bullish recovery.
Strategic Profit-Taking and Market Adjustments
Doctor Profit has shifted from a bullish stance to strategic profit-taking. He secured massive gains by selling 50% of his holdings, bought at $16,000. He now holds 30% in locked sell orders between $90,000 and $102,000, while the remaining 20% is reserved for long-term accumulation.
Additionally, he entered short positions at $90,000, targeting profit-taking zones at $74,000 and ultimately between $50,000 and $60,000. If his predictions hold, Bitcoin could experience a deeper correction before resuming its upward trajectory. His strategy suggests that selling at 15% below all-time highs is a better option than waiting for a potential 50% drop.
