Bitcoin's $90,000 Level: A Crucial Test to Avert a New Bear Market, Top Analyst Warns
As Bitcoin (BTC) hovers above $113,000 amidst a period of consolidation, market sentiment remains cautious. A prominent analyst, known for accurate predictions throughout this cycle, suggests that a new bear market could be looming closer than many investors currently perceive, pinpointing a critical price range that Bitcoin must defend.
Bearish Outlook from a Noted Analyst
The analyst, identified as "Doctor Profit," has maintained a bearish stance since August. He predicts that Bitcoin is likely to fall into the $90,000 to $94,000 range. According to Doctor Profit, if Bitcoin fails to hold this crucial support level, it would effectively signal the end of the current bull market cycle. He views recent upward price movements, such as the mid-September surge to $117,800, not as signs of renewed bullish momentum but rather as opportune moments for investors to enter short positions at more favorable levels. His conviction is reinforced by the fact that the price has spent 77% of the time below his initial short position entry point of $115,000.
Mixed Signals from On-Chain Indicators
Despite the analyst's cautionary forecast, on-chain data from the CryptoQuant platform presents a more nuanced picture with conflicting indicators. Over the past 60 days, Tether's USDT market capitalization has seen a significant increase of $10 billion, suggesting fresh liquidity flowing into the market—a typically bullish signal. Furthermore, the Stablecoin Supply Ratio (SSR) RSI is at 21, which historically indicates a "buy" signal, reflecting substantial buying power from stablecoin holders. The number of accumulator addresses, which are wallets making multiple purchases without selling, has also reached an all-time high of 298,000 BTC, indicating strong long-term holder conviction. However, contrasting these bullish metrics, the Inter-Exchange Flow Pulse (IFP), which tracks Bitcoin flows between spot and derivatives exchanges, is currently trending downwards, a pattern commonly associated with bearish market conditions. The confluence of these mixed signals underscores a pivotal moment for Bitcoin. While strong accumulation and liquidity inflows provide a bullish undercurrent, the technical analysis warning from Doctor Profit highlights the critical importance of the $90,000 to $94,000 price band. How Bitcoin reacts to this key level will likely dictate its trajectory in the coming months, determining whether it can stave off a bear market or succumb to further downward pressure.
