Analyst argues Bitcoin has not experienced the major capitulation event that typically marks the end of bear markets. The analyst cites industry funding pressures and a bearish flag pattern a
Bitcoin may face another major decline before reaching a cycle bottom, according to market analyst Doctor Profit, who argues that current buying activity is arriving too early. In a recent market assessment, the analyst said Bitcoin has not yet experienced the capitulation event typically seen at major bottoms. He added that ongoing pressure across crypto businesses, venture capital firms, custodians, lending platforms, and yield protocols remains a key concern.
According to Doctor Profit, investors buying Bitcoin now are providing liquidity to a market still under stress. He said previous bear markets ended only after major failures across the industry.
To support that view, he referenced the collapses of FTX, Three Arrows Capital, Alameda Research, Digital Currency Group's Genesis unit, BlockFi, Voyager, and Celsius during the last cycle. However, he argued that the current downturn has not yet produced a comparable event.
The analyst also highlighted concerns surrounding funding within the Ethereum ecosystem. He cited comments from a former Ethereum Foundation staff member who warned of a potential core developer funding shortage within three to nine months.
According to Doctor Profit, the discussion around funding pressures reflects broader challenges facing parts of the digital asset industry. Consequently, he believes market participants should closely monitor developments across major crypto organizations.
Beyond industry concerns, Doctor Profit pointed to technical indicators. He said Bitcoin is forming a bearish flag pattern on the daily timeframe.
According to the analyst, market sentiment has improved recently despite what he described as a weakening technical structure. He also stated that liquidity has accumulated below current price levels during the last 60 days.
Doctor Profit noted that he previously entered short positions near $120,000 and again around the $80,000 to $82,000 range. Meanwhile, he said he is preparing additional short orders between $68,000 and $69,000 if Bitcoin revisits that area.
The analyst expects Bitcoin to decline toward the $54,000 to $56,000 range before another period of consolidation. After that, he forecasts an additional downward move.
According to Doctor Profit, his projected bottom remains between $40,000 and $50,000. He also stated that Bitcoin has historically required miner capitulation before establishing a lasting market low.
For now, the analyst maintains a long-term bullish outlook on Bitcoin. However, he said current conditions do not support new long-term entries and that he remains focused on lower price targets before reconsidering exposure.
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