Analyst Warns: Bitcoin Drop Below $101,700 May Confirm Bear Market
Bitcoin's decline past $104,000 triggers extreme market fear, signaling potential prolonged downturn.
Bitcoin (BTC) recently faced a significant downturn, dropping below $104,000 on October 17th after fluctuating between $116,000 and $108,000 over previous days. This decline has placed the market into an “extreme fear” state for the first time since April, leading to speculation about the sustainability of the current bull cycle, with warnings of further losses ahead.
A Critical Line in the Sand
In his Big Sunday Report, crypto trader Dr. Profit shared with his followers on X, urging them to establish short positions in the $115–125k zone. He cautioned that the market has turned “extremely bearish.” He has been advocating this strategy since late August, noting that Bitcoin had reached $126,000, slightly exceeding his predicted maximum of $125,000 before falling sharply on October 10, dipping as low as $101,000 on specific trading platforms.
Dr. Profit highlighted the psychological aspects of the market, stating:
“Markets are driven by greed. I have rarely seen so much greed in the market as now, on both the bear and bullish sides.”
His analysis centers on a critical technical threshold: a firm drop beneath $101,700.
“By breaking below $101,700, Bitcoin will break its critical bull market line, confirming a bear market and effectively silencing bullish predictions once and for all!” stated Dr. Profit.
In addition, he pointed to the liquidity dynamics as a factor, mentioning that late-entry shorts, liquidations near $116,500, and the concentration of positions among short-term holders have weakened the price structure.
Market Sentiment and Trends
As the weekend progressed, the price movement reflected cautious sentiment. As of the writing of this article, CoinGecko reported Bitcoin trading at approximately $110,700, up 3.5% from the previous day but still down 3.5% over the past week. The 14-day decline approached 10.6%, while the 30-day drop was 4.1%.
Dr. Profit’s warnings coincide with a broader negative sentiment in the market. Reports dated October 17th indicated that the Fear & Greed Index reached its lowest point since April. Over the last few days, around $900 billion has evaporated from the market. Some analysts believe the medium-term uptrend may persist if key support levels hold; however, others note that liquidity measures associated with ETFs and leveraged positions render the market vulnerable to wild directional fluctuations.
