Bitcoin May Be on the Brink of a Major Drop
Bitcoin (BTC) may be on the brink of a major price drop, with market analysts warning that the cryptocurrency’s bull market could be over. Concerns about delayed action by the Federal Reserve, weakening economic data, and bearish technical signals are fueling predictions of a significant reset.
Recent Price Decline
Bitcoin has seen a notable decline since early October, dropping from its peak of $126,000 to around $90,000. Market analyst Mr. Wall Street has warned that Bitcoin is gearing up for a significant downturn after a final rebound towards the $100,000 level. He cites a combination of deteriorating macroeconomic conditions, delayed Federal Reserve action, and bearish technical signals as indicators of a broader bear market for the world’s largest cryptocurrency.
Macroeconomic Concerns
Mr. Wall Street argues that the US economy began weakening at the start of 2025, with policymakers failing to respond in time. Worsening employment data and falling underlying inflation signal the need for early interest‑rate cuts. However, the Fed has kept policy tight, citing inflation readings that the analyst believes are overstated due to tariffs and external political factors.
This delay has left the economy vulnerable, as monetary easing takes time to filter through markets. Mr. Wall Street suggests that it may be “too late” for rate cuts alone to prevent a deeper correction. Instead, he believes a large‑scale liquidity injection amounting to trillions of dollars is needed to stabilize markets. Until such an intervention occurs, he expects asset prices, including Bitcoin, to continue falling toward what he considers fair value.
Technical Indicators Point to a Bear Cycle
From a technical perspective, Bitcoin’s bullish structure has broken. Key indicators include a weekly close below the 50‑week exponential moving average, a bearish crossover on the monthly MACD indicator, and a bearish divergence on the relative strength index. These signals are seen as classic markers of the start of a bear cycle.
Additional Market Stress
Additional stress in funding markets, heavy use of US repo facilities, and declines in major US technology and artificial‑intelligence‑linked stocks further confirm tightening financial conditions. Potential increases in Japanese interest rates could accelerate the unwinding of carry trades, adding more pressure. Market‑making institutions that failed during a previous crash may also seek to liquidate large spot holdings once prices revisit key technical levels.
Analyst Outlooks
Mr. Wall Street’s Forecast
He rejects arguments that quantitative easing has already begun, describing recent Federal Reserve bond purchases as isolated operations rather than a policy shift. While he maintains a long‑term bullish view on Bitcoin as a finite‑supply asset that benefits from monetary expansion, he does not see optimism in the coming quarters.
He expects Bitcoin to first retest the 50‑week EMA, currently near $100,000, before resuming its decline. He has placed short positions in the $98,000‑$104,000 range and predicts an initial move down to $68,000‑$74,000, followed by a deeper drop to $54,000‑$60,000 by the fourth quarter of 2026.
Doctor Profit’s View
Another prominent crypto analyst, Doctor Profit, echoes this sentiment, stating, “Bitcoin remains in a strong bear market and we have not bottomed out yet.”
Conclusion
As Bitcoin faces potential headwinds from both macroeconomic conditions and technical indicators, analysts are warning of a significant price drop. While the long‑term outlook remains bullish for some, the short‑to‑medium term could see Bitcoin testing lower support levels. Investors are advised to conduct their own research and consider the risks involved in cryptocurrency investments.
