Cryptocurrency Market Enters Stage 4 Bear Market Cycle, Analyst Warns of Further Price Drops

The cryptocurrency market has been experiencing a significant downturn in recent weeks, with Bitcoin's price plummeting from its all-time high of $125,000 to near $60,000. According to Doctor Profit, an analyst who has been tracking the market's behavior, this drop is not just a random fluctuation but rather a part of a six-phase bear market cycle.

The first phase of the cycle, which occurred between $115,000 and $125,000, was marked by euphoric buying and excessive leverage. However, as Bitcoin lost the $100,000 psychological level, it entered Stage 2, characterized by a swift and calculated breakdown. This led to a 50% drop in just 30 days, with nearly half of Bitcoin's market capitalization evaporating.

Now, Doctor Profit believes that Bitcoin is in Stage 4, which is marked by prolonged sideways action within a defined range. He notes that this phase exhausts participants rather than shocks them and is characterized as a 'weak-hands selling zone.' On-chain data also suggests rising short-term holder capitulation in recent days.

While the analyst expects a potential short-term bounce, he maintains broader downside targets, including a drop to the $35,000 to $45,000 zone. This would mark the ultimate bottom scenario for Bitcoin, according to Doctor Profit's predictions.