The crypto market has weakened since early October, with Bitcoin (BTC) sliding to about $90,000 from its then-peak of $126,000.
Amidst rising concerns, market analyst Mr. Wall Street said that BTC is gearing up for a significant downturn after a final rebound toward the $100,000 level. He said a combination of deteriorating macroeconomic conditions, delayed Federal Reserve action, and bearish technical signals points to the start of a broader bear market for the world’s largest cryptocurrency.
Key Bitcoin Technical Levels Break
In a detailed market breakdown, the analyst explained he had turned bearish on Bitcoin in the short and medium term as early as November, while arguing that the US economy began weakening at the start of 2025, as policymakers failed to respond in time. He said worsening employment data and falling underlying inflation signaled an urgent need for early interest rate cuts, but the Fed instead kept policy tight, citing inflation readings he described as overstated due to tariffs and external political factors.
According to Mr. Wall Street, this delay has left the economy vulnerable, as monetary easing takes time to filter through markets, thereby making it “too late” for rate cuts alone to prevent a deeper correction. He said the only remaining tool capable of stabilizing markets would be a large-scale liquidity injection amounting to trillions of dollars, rather than limited, one-off bond purchases.
Until such an intervention occurs, he expects asset prices, including Bitcoin, to continue falling toward what he considers fair value.
From a technical perspective, he said Bitcoin’s bullish structure has already broken. He pointed to a weekly close below the 50-week exponential moving average, a bearish crossover on the monthly MACD indicator, and a bearish divergence on the relative strength index, which he views as classic signals marking the start of a bear cycle.
He also spoke about the stress in funding markets, heavy use of US repo facilities, and declines in major US technology and artificial intelligence-linked stocks as further confirmation of tightening financial conditions. Additional pressure could come from a potential increase in Japanese interest rates, which would accelerate the unwinding of carry trades, as well as from market-making institutions that failed during a previous crash and may seek to liquidate large spot holdings once prices revisit key technical levels.
Stark Bitcoin Roadmap Through 2026
Mr. Wall Street rejected arguments that quantitative easing has already begun, and described recent Federal Reserve bond purchases as isolated operations rather than a policy shift. While reiterating a long-term bullish view on Bitcoin as a finite-supply asset that benefits from monetary expansion, he said this does not justify optimism over the coming quarters.
He expects Bitcoin to first retest the 50-week EMA, currently near $100,000, before resuming its decline. He placed short positions in the $98,000-$104,000 range and predicted an initial move down to $68,000-$74,000, followed by a deeper drop to $54,000-$60,000 by the fourth quarter of 2026.
A similar sentiment was echoed by another prominent crypto analyst, Doctor Profit, who reiterated his previous stance, and added,
“Bitcoin remains in a strong bear market and we have not bottomed out yet.”
The post Bitcoin (BTC) Headed for a Brutal Reset? Analyst Warns $60,000 Is Still on the Table appeared first on CryptoPotato.
