Bitcoin Faces 25% Drop as Market Makers Drive Fear

Bitcoin is currently facing significant bearish pressure, with market analysts and traders anticipating a deep pullback. Doctor Profit, a prominent market analyst, recently exited all his BTC spot holdings, selling 25% at $108,000 and the remaining at $103,300. He then entered a short position from $103,000, indicating that market makers are driving fear to accumulate cheaper Bitcoin holdings. According to Doctor Profit, the market makers' strategy aims to intensify fear, potentially dragging prices well below $100,000, with a target range between $93,000 and $94,000. If the bearish sentiment continues, the correction could deepen toward the $82,000–$84,000 range.

Doctor Profit's strategy involves profit realization followed by strategic re-entry, a method he likens to selling 10 apples at $1 and buying them back at $0.70, thereby increasing one’s holdings. This approach could boost holdings by 60% using calculated shorting with minimal capital exposure. This strategy reflects the behavior of smart money, while retail traders often panic sell when fear rises. Multiple technical signals support a bearish continuation, including Bitcoin losing the key $103,000 support and failing to recover. Indicators such as MACD, RSI, moving averages, and the monthly candle all reinforce the bearish trend. The daily MACD has flipped negative, confirming that momentum has shifted. As a result, Doctor Profit remains in a full cash position while keeping the short open.

There is a large CME gap at $92,000, and Bitcoin usually fills such gaps. Additionally, liquidity sits in that range. James Wynn, a popular trader, echoed the sentiment, increasing his short position and targeting the $93,000–$95,000 zone. He believes that ongoing geopolitical tensions and macroeconomic instability could push Bitcoin even lower. Upcoming U.S. economic data, such as the Final GDP and Core PCE Price Index, may inject more volatility. Investors are cautious as no interest rate cuts are expected soon. The global M2 money supply is expanding—but not through U.S. dollars. This adds to the uncertainty.