The Bitcoin Surge May Continue, But a Drop Could Follow
While Bitcoin's price seems poised for an upward trend, experts warn of potential challenges ahead.
Bitcoin (BTC) gained over 1.1% during Monday’s Asian trading session, marking its fifth consecutive daily increase—the longest such stretch since early October—with the price briefly hitting $93,000.
While BTC has surpassed short-term bearish trends, analysts caution that a liquidity crisis might provoke a sudden decline.
Bitcoin Surpasses the “Silver Line”
Crypto analyst Doctor Profit identified Bitcoin’s breakout above what he refers to as the “Silver Line,” a significant short-term resistance level that had hindered price growth five times previously. In a comprehensive report over the weekend, he noted that this breakout was followed by a clear retest and bullish confirmation, suggesting BTC has broken free from short-term bearish pressure and is gearing up for further gains.
Doctor Profit’s analysis aligns with his predictions over the past two months. After Bitcoin reached his prior target of $80,000, he emphasized that further potential heights of $97,000 to $107,000 remain viable before a larger downward trend resumes. He mentioned starting to buy BTC around the $85,000 mark, intending to offload his holdings within the $97,000 to $107,000 band. According to current market dynamics, this movement appears imminent.
Consequently, Doctor Profit is placing several short orders in the $97,000-$107,000 zone, opting for a strategy that segments trading capital into multiple parts to establish staggered short positions, aiming for the most advantageous average entry price. Additionally, he mentioned retaining earlier short positions from the $115,000-$125,000 range fully open, anticipating movement towards those elevated levels.
Despite the optimistic near-term outlook, Doctor Profit maintains a bearish stance on Bitcoin’s overall trajectory, targeting prices below $70,000 in the upcoming months. Significant macroeconomic variables are touted as critical to this perspective. He highlighted the Federal Reserve’s $106 billion in overnight repo lending to banks on New Year’s Day as a major red flag, pointing out modifications to repo lending rules in September 2025 that permit increased liquidity for banks, which he sees as indicative of heightened financial system strain.
He also referenced historical trends where periods of banking strain and liquidity scarcity often precede bear markets. Factors such as insider selling, banking pressures, and stress linked to silver markets further solidify his bearish outlook.
Greater Risks Ahead?
Market commentator Mr Wall Street echoed similar concerns, tweeting that BTC encounters downside risks despite a likely short-term rally amid geopolitical tensions, notably those involving Venezuela and macroeconomic pressures. He suggested that markets are beginning to factor in the risk of a broader global crisis that could adversely affect risk assets like BTC. While he anticipates a forthcoming relief rally aimed at increasing liquidity, this trend is expected to be short-lived.
