Bitcoin’s market has experienced significant volatility as of late. Prices have seen dramatic changes, touching nearly $98,400 then rebounding to surpass $105,000 on Monday. A potential 12% pullback to $92,000 is now in question.
Technical analyst Doctor Profit has recently shared important observations on the social media platform X (previously known as Twitter), pointing to a significant Chicago Mercantile Exchange (CME) gap at $92,000. The analyst forecasts that Bitcoin will likely touch this level, indicating that filling this gap might trigger further market anxiety, often exploited by market makers.
Doctor Profit also mentioned the considerable liquidity in this area in his analysis, making it a plausible near-term target for Bitcoin. This could mean a 12% retrace for BTC’s value. He also emphasized several technical indicators hinting at a bearish pattern for Bitcoin, including the Moving average convergence/divergence (MACD) crossing on the daily chart and the breach of the crucial $104,000 level.
Doctor Profit also drew attention to the temporary loss of what he termed the “golden line,” currently sitting around $103,000 for BTC, another crucial level to monitor for future recoveries. He cautioned that vigilance is needed, especially near crucial levels such as $100,000 and the CME gap at $92,000. He even suggested the possibility of Bitcoin correcting down to the $82,000–$84,000 bracket in a worst-case scenario.
Doctor Profit further explained that the situation depends on the golden line, acting as a critical retest to verify yesterday’s breakdown. For Bitcoin to maintain a bullish progression, it needs to close above this level.
He also identified a substantial liquidity cluster around the $113,000 mark, noting that this area is full of short liquidations. If Bitcoin consolidates above the golden line, the uncertainty troubling traders could diminish, triggering a move from protective strategies back to a more bullish outlook.
In his analysis, Doctor Profit concluded that while he initially anticipated Bitcoin to hit $90,000 before any new all-time highs (ATH), the resolution of current market uncertainty suggests that this may no longer be required. With the Israel-Iran conflict and the volatility seemingly over, he believes Bitcoin can speed toward new all-time highs without needing to revisit the $90,000 mark.
At the time of writing, BTC is trading at $105,560, showing a 3% price increase in the 24-hour period. At this level, the market’s leading cryptocurrency stands 5.3% below its record high of $111,800.
