Bitcoin is currently experiencing a period of sideways trading, with analysts predicting that this phase may lead to a substantial price decline in the near future. According to crypto analyst Doctor Profit, Bitcoin is likely to drop to the range of $44,000 to $50,000 after this consolidation period.
The cryptocurrency is now oscillating between $57,000 and $87,000, a range that Doctor Profit suggests is not indicative of bullish momentum but rather preparatory for an impending downturn. He points out that the current consolidation mirrors the price structure observed in 2024, where Bitcoin spent a significant amount of time trading between $58,000 and $74,000 before ultimately rising to $100,000.
Doctor Profit elaborates, stating, “Bitcoin is currently trading in a zone where it previously consolidated for an entire year before breaking higher toward $100,000. In a bear market context, this same zone is not support; it is structure, and structure eventually breaks.” He warns that once the sideways trading phase concludes, the likelihood of a downward breakout increases substantially.
In light of these projections, traders are advised to brace for increased volatility in the coming months. Doctor Profit suggests that traders can capitalize on minor price movements while maintaining their positions. His current strategy involves purchasing spot Bitcoin in the $57,000 to $60,000 range, which he identifies as a local bottom, though he emphasizes that this is not the macro bottom.
He notes, “I buy between $57,000 and $60,000 for percentage gains, not for the long-term plan.” Despite these purchases, he maintains an aggressive short position that was established when prices ranged from $115,000 to $125,000. Doctor Profit also anticipates that Bitcoin will test the lower end of the current trading range multiple times, reinforcing his strategy of holding both spot buys and shorts.
Additionally, Doctor Profit highlights that $87,000 represents the upper limit for the market”s potential rise, contingent upon overall market strength and longevity of the price stability. With these dynamics at play, traders should remain vigilant and prepared for significant fluctuations in Bitcoin”s price as the market navigates this consolidation phase.
The post “Bitcoin Faces Extended Sideways Action Before Major Drop” originally appeared on Crypto Front News. For further insights into cryptocurrency, blockchain technology, and digital assets, visit our website.
