The major cryptocurrency bitcoin remains in bearish territory and could decline as low as $50,000 since it failed to reach $73,000 again. Nevertheless, Doctor Profit, who is an expert in crypto currency, points out that at the moment Bitcoin is in a very obvious trading range, which suggests the consolidation phase.
Current market sentiment and Bitcoin’s downward trend
Crypto analyst Doctor Profit addressed the common belief in the crypto community that the market moves unpredictably. He disagrees, stating that movements should be expected, especially now with the year starting off with a significant sideways trend.
Doctor Profit has pointed out on X, that Bitcoin’s price typically moves between $72,000 and $56,000 – $57,000, marking the high and low points in his chart. While some in the community think this range is too wide, he argues that it’s quite accurate.
By comparing key Fibonacci resistance levels, important moving averages, and the liquidity created at these points, he shows that this range makes the most sense. He also believes that market makers choose this range for specific reasons, supported by the chart patterns.
He stated:
Market makers chose this range for a reason. You can dislike it all you want, but look at the facts and the chart, and you will notice the absolute precision of the box and the undeniable profitability of buying at the bottom of the box since the beginning of the year, and the chart is a proof for that.
Doctor Profit X
Doctor Profit is convinced that concerns about a new crisis in the Middle East are behind strong selling in Bitcoin. Using his information about Iran’s possible actions and the reactions of Israel he says that the market excitement might go either way.
He further encourages investors to focus on those individuals who make aggressive BTC transactions instead of getting overwhelmed by small sell-offs.
Large traders realize that when prices are at the lower end, it is extremely possible to buy Bitcoin, as it usually refers to a local low.The recent dip in Bitcoin has been described as a source of fear for most players in the market with many positions having been exited in the last few days.
Crypto trader Mike Alfred notes a similar move to what happened in March 2020 when the sell-off triggered a BTC price drop from $8,000 to $4,000.
For now, Alfred opines that it may go down further then rebound and investors should keep an eye for large sell offs leading to rapid recovery.
