Is Bitcoin’s Soaring Rally a Deadly Illusion? Analyst Warns of Imminent Crash!

Bitcoin may rise further before reversing sharply but analyst predicts a deeper correction ahead after short-term gains play out.

Bitcoin (BTC) entered the week with a fresh decline below $71,000 on Monday, and its next move remains uncertain.

But market players expect a final upside push before a major downturn unfolds in the coming weeks.

Final Pump Before Dump?

Crypto analyst Doctor Profit believes Bitcoin could see a limited upside move in the near term before entering a broader and more aggressive decline. According to his latest assessment, the probability of Bitcoin climbing toward the $76,000 level is high. While the price could still extend beyond that zone into the $79,000 to $84,000 range, uncertainty remains about how far the current upward momentum can stretch before a reversal begins.

In his latest tweet, Doctor Profit stated that the broader trend remains bearish despite the potential for short-term gains. He expects the market to experience a significant downward move in the coming weeks and argued that the current price action could be setting up a bull trap.

In this scenario, temporary upward momentum may draw in optimistic buyers before a sharp reversal leads to deeper losses. The analyst believes this type of setup is often driven by market makers aiming to create liquidity before pushing prices lower. As a result, he does not view the recent recovery as a sign of a confirmed bottom, but rather as part of a larger corrective structure that has yet to play out fully.

A major part of his outlook is tied to expectations in traditional financial markets. He predicts a major correction in the S&P 500 within the next two months, which could potentially exceed a 35% decline.

Such a drop would be larger than the fall recorded during the COVID-19 market crash, and he expects it to have a strong spillover effect on risk assets. Hence, Bitcoin is unlikely to remain insulated if equities experience a sharp downturn, and instead could follow with an accelerated decline of its own. This anticipated “domino effect” is central to his bearish thesis.

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Doctor Profit reiterated his previous analysis that Bitcoin will eventually fall into the $50,000 range or even lower after completing its current upward phase.

Geopolitical Turmoil Persists

Bitcoin slipped as geopolitical tensions escalated following the breakdown of high-stakes negotiations between the United States and Iran in Islamabad. The talks failed to produce a resolution, as both sides blamed each other. The situation intensified after US officials stated that Iran was unwilling to accept terms, while Tehran described the demands as unreasonable.

Markets reacted more sharply to subsequent developments, particularly the warning of a potential US naval blockade in the Strait of Hormuz, a critical global oil route. The threat of intercepting vessels and escalating military action raised fears of supply disruptions and broader conflict.