Bitcoin declined below $71,000 amid persistent geopolitical tensions and a mixed analyst outlook. One analyst anticipates a final short-term price rise towards $76,000 before a sharper downturn, potentially influenced by a predicted major correction in traditional equities.
Bitcoin began the week trading below $71,000 as its next direction remained unclear. Market participants expect a final upward push before a broader downturn unfolds in the coming weeks.
Analyst Doctor Profit believes Bitcoin could see limited near-term upside. He stated the probability of a climb toward $76,000 is high, with potential to extend into the $79,000 to $84,000 range. 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 soon and argued the current price action could be setting up a bull trap. This scenario may draw in optimistic buyers before a sharp reversal leads to deeper losses. Doctor Profit reiterated his previous analysis that Bitcoin will eventually fall into the $50,000 range or lower after completing its current upward phase.
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 exceed a 35% decline. Such a drop would be larger than the fall recorded during the COVID-19 market crash.
Bitcoin slipped as geopolitical tensions escalated following the breakdown of high-stakes negotiations between the United States and Iran. The situation intensified after U.S. officials warned of a potential naval blockade in the Strait of Hormuz, a critical global oil route. Markets reacted more sharply to these subsequent developments.
