Analysts have lowered Bitcoin’s potential final bear market bottom to between $35,000 and $45,000, citing deteriorating global liquidity. The asset recently fell below $65,000 following trade policy uncertainty. Market analysis suggests Bitcoin is now in a phase of maximum psychological stress for traders, characterized by low volatility and exhaustion as it moves within a defined range.
Bitcoin briefly traded under $65,000 after a proposal from US President Donald Trump to increase global tariffs. Market data indicates the asset is now in a period causing maximum psychological damage to traders.
According to analysis by Doctor Profit, Bitcoin is in Stage 4 of its current cycle. This stage follows a sequence driven by liquidity, leverage, and investor psychology patterns. The analyst stated that Stage 1 featured a rally with euphoric sentiment and extreme buying appetite.
Stage 2 began when Bitcoin broke below the critical $100,000 level, triggering stress. A sharp crash on October 10 was cited as producing the largest liquidation event in crypto history. Stage 3 confirmed the bear market with an extreme 38% drawdown from its all-time high.
Doctor Profit described Stage 4 as a long, sideways period defined by low volatility but high psychological stress. He characterized it as a weak-hands selling zone dominated by frustration and regret where most short-term holder capitulation occurs. Short-term bounces within the $57,000-$60,000 range remain possible according to the analysis.
The projected Stage 5 is the full capitulation phase, often associated with systemic stress events. Revised downside targets for this phase are now between $35,000 and $45,000 amid broader macro concerns. Doctor Profit concluded the fastest downside may be over, but the most damaging psychological phase has begun.
