Bitcoin experienced a rebound late Sunday after a multi-day decline, but analysts caution a full recovery is not yet underway. Market observer Doctor Profit stated Bitcoin has entered Stage 5 of a bear market framework, characterized by intense emotional pressure and volatile swings around the $60,000 level. He anticipates the ultimate bottom could form between $40,000 and $48,000, with a final market low projected for late 2026.
Bitcoin rebounded late Sunday following several days of downward price action. Analyst Doctor Profit believes the asset has moved into Stage 5 of his six-stage bear market framework.
He explained the recent brief drop below $60,000 was a “trapdoor” into this volatile phase. Many traders have mistakenly concluded the worst is over, similar to premature confidence in past cycles.
The analyst views the area between $40,000 and $48,000 as Bitcoin’s final bottom. He refers to this as the “Confirmed BlackRock Bottom” due to its coincidence with the price when BlackRock launched its spot Bitcoin ETF.
The $60,000 level remains a key short-term technical support zone. Bitcoin could rebound toward $65,000-$66,000 before resuming its broader downtrend.
Doctor Profit expects Stage 5 to feature sharp price swings below and above $60,000. He said this phase is designed to inflict maximum emotional pressure before a final bottom.
He does not anticipate the bear market ending quickly. His projection is for Bitcoin’s ultimate low to form between September and October 2026.
He also expects a major market event to act as the final capitulation catalyst. This would be similar to the role played by the FTX collapse in the previous cycle.
Recent market pressure stems from spot Bitcoin ETF outflows and geopolitical tensions. After prices recovered near $63,000, Michael Saylor hinted at another MicroStrategy BTC purchase by posting the firm’s acquisition tracker.
Bitwise Chief Investment Officer Matt Hougan observed this crypto winter is unfolding differently. He noted capital is flowing toward smaller digital assets with stronger fundamentals rather than just into Bitcoin for safety.
