The cryptocurrency market has experienced a downturn since early October, with Bitcoin (BTC) dropping from its previous high of $126,000 to approximately $90,000.
Market expert Mr. Wall Street has expressed concerns that Bitcoin is preparing for a major decline following a final rally toward the $100,000 mark. He attributes this outlook to worsening macroeconomic factors, delayed responses from the Federal Reserve, and negative technical indicators signaling the onset of an extended bear phase for the leading digital currency.
Critical Technical Thresholds Breached for Bitcoin
In his comprehensive analysis, Mr. Wall Street revealed he adopted a bearish stance on Bitcoin both short- and mid-term as early as November. He noted that signs of economic weakening in the U.S. began at the start of 2025 due to policymakers’ slow reaction times. Deteriorating employment figures alongside declining core inflation suggested an urgent need for interest rate reductions; however, the Fed maintained tight monetary policies based on inflation data he considers inflated by tariffs and geopolitical tensions.
This hesitation has left economic conditions fragile because monetary easing effects take time to materialize in markets—making it “too late” for mere rate cuts to avert deeper corrections. According to him, only massive liquidity injections totaling trillions could stabilize markets effectively rather than limited bond-buying operations.
Until such measures are implemented, he anticipates continued declines in asset prices including Bitcoin’s movement toward what he deems its intrinsic value.
From a technical standpoint, key bullish patterns have already been broken: weekly closes below the 50-week exponential moving average (EMA), bearish crossovers on monthly MACD charts, and negative divergences on relative strength index (RSI) readings all point towards an emerging bear market cycle.
Additional signs include stress within funding markets evidenced by heavy reliance on U.S. repo facilities and falling valuations among major U.S technology stocks tied closely with artificial intelligence sectors—further indicating tightening financial conditions globally. Rising Japanese interest rates may accelerate unwinding carry trades while certain market makers who failed during past crashes might liquidate substantial spot holdings once critical technical levels are retested.
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An Unforgiving Outlook For Bitcoin Through 2026
Mr. Wall Street dismissed claims suggesting quantitative easing is underway; instead describing recent Federal Reserve bond purchases as isolated incidents rather than indicative policy shifts. While maintaining his long-term optimism about Bitcoin’s value due to its capped supply benefiting from ongoing monetary expansion globally—he cautioned against expecting positive trends over upcoming quarters.
The analyst forecasts that BTC will initially revisit its 50-week EMA near $100K before continuing downward pressure resumes strongly thereafter—with short positions recommended between roughly $98K-$104K ranges targeting initial falls into approximately $68K-$74K territory followed by further drops reaching between around $54K-$60K by Q4 2026.
This cautious perspective aligns with views shared by another respected crypto commentator known as Doctor Profit who reaffirmed his prior assessment stating:
“Bitcoin remains entrenched within a robust bear market environment without having reached bottom yet.”