Since 2025, both Bitcoin (BTC) and the stock market have faced significant fluctuations and downturns. A cryptocurrency analyst has cautioned that this trend of volatility may escalate further in 2026. In his comprehensive analysis, he presents a pessimistic outlook for Bitcoin, indicating that the leading cryptocurrency might soon encounter another substantial price drop due to ongoing downward trends in the overall stock market.
Analyst Sounds Alarm on Potential Bitcoin and Stock Market Decline
Market expert Doctor Profit has expressed serious concerns regarding the trajectory of both crypto and traditional markets, asserting that Bitcoin along with stocks are entrenched in a deep bear market. In a technical assessment shared on X this Monday, he pointed out three significant bearish indicators developing concurrently within Bitcoin.
The analyst noted a considerable Bearish Divergence appearing on weekly and monthly charts, alongside an evident bearish flag suggesting a potential decline towards $70,000. He also mentioned the possibility of a Head and Shoulders pattern emerging as well. While acknowledging that there could be short-term gains for Bitcoin pushing it briefly into the $97,000-$107,000 range due to robust liquidity conditions, he maintained that ultimately it is heading towards $70,000.
Doctor Profit highlighted two possible scenarios regarding Bitcoin’s anticipated drop to $70,000. It could either break down from the bearish flag directly toward this target or complete its Head and Shoulders formation before reaching $70K. He stated his intention not to initiate new short positions at current levels but plans to aggressively increase them if prices rise between $115K-$125K while trading within the range of $97K-$107K.
The analyst conveyed an equally bleak perspective concerning the stock market as well. He described himself as “ultra-bearish” regarding both Bitcoin and financial systems overall. Additionally, he pointed out stress among banks which is causing forced liquidations in precious metals like Silver—creating disturbances throughout broader markets.
Moreover, Doctor Profit observed alarming insider activity indicative of panic among investors; record selling levels have been noted since August 2025. As such observations lead him to believe we may be approaching another crash reminiscent of 2008’s financial crisis; thus concluding current market conditions are excessively severe.
On a more positive note though Doctor Profit maintains his short positions on stocks and cryptocurrencies; he remains optimistic about Gold and Silver investments instead. He elaborated that any upward movement into the range between $97k-$107k would prompt him to bolster his short exposure while reallocating profits from BTC at around $85k into these positions accordingly.
Crypto Markets Prepare for Crucial US Developments
Nearing conclusion in his analysis Doctor Profit addressed forthcoming events likely impacting both Bitcoin prices along with wider financial landscapes this week ahead stating specifically Tuesday will see release data forecasting US CPI inflation at around 2.7%. Beyond this event however little else appears set-to-move markets significantly throughout remainder week ahead.
Additonally highlighting January 15th as pivotal date wherein US lawmakers will cast votes concerning CLARITY Act—he explained should bill pass it would progress closer toward enactment establishing clearer regulations & oversight mechanisms pertaining specifically towards crypto sector operations moving forward .
Featured image from Pixabay; chart sourced via Tradingview.com