Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Bitcoin quickly fell below $65,000 and financial markets returned to nervousness after U.S. President Donald Trump announced he would raise global tariffs to 15%.
Although the sharp decline appears to be over, some analysts believe the most difficult phase may still lie ahead.
The analyst known as “Dr. Profit” divides the current cycle into six psychological and market stages.
The first phase began when Bitcoin rose from $115,000 to $125,000, where excessive optimism, high leverage, and the belief that risks had been overcome took over.
Then it entered the second stage, breaking through the $100,000 mark, which brought a wave of anxiety and pressure to short-term traders, causing a large number of positions to be liquidated.
The third stage is the fastest and most violent stage. It is confirmed that the market has entered a downward channel after falling more than 38% from the peak, and rapid forced re-pricing leads to the loss of about half of the market value. This stage is characterized by panic and the inability to hedge.
The market is now thought to have entered Stage 4, which analysts describe as a stage of “psychological torture.”
This was a relatively long period of sideways movement with significantly lower volatility, but traders were mentally exhausted.
During this stage, prices fluctuate within a specific range, creating liquidity for both parties, while investor confidence gradually erodes and those with weaker positions capitulate.
The analyst “Dr. Profit” believes that a complete breakdown or complete capitulation – Stage 5 – may happen later rather than immediately, with the possibility of a drop towards the $35,000 to $45,000 range if overall pressure escalates or suddenly hits.
Instead, we may see a brief bounce in the $57,000 to $60,000 range before further declines.
According to the framework, the sixth phase will be a stable and quiet accumulation phase for major players, while individual investors remain hesitant and anticipate further declines.
Also read:
‘Strategy’ firm buys more Bitcoin despite losses of nearly $7 billion: details
Solana Sends Scary Sell Signal: Will SOL Price Drop Below $20?
