Analyst Says Bitcoin’s Rally Could Be a Trap Ahead of Big Crash

Bitcoin may rise further before reversing sharply, but the analyst expects a deeper correction ahead after short-term gains.

Bitcoin (BTC) entered the week with a new low below $71,000 on Monday, and its next move remains uncertain.

But market players are anticipating a final upward push before a major downturn unfolds in the coming weeks.

Final pump before discharge?

Cryptocurrency analyst Dr. Proffitt believes that Bitcoin may see limited upward movement in the near term before entering a broader, more aggressive decline. According to his latest assessment, the possibility of Bitcoin rising towards the $76,000 level is high. While the price could still extend beyond that area into the $79,000 to $84,000 range, there is still uncertainty about how far the current bullish momentum can extend before a reversal begins.

In his latest tweet, Dr. Proffitt male The broader trend remains bearish despite the potential for short-term gains. He expects the market to witness a significant downward movement in the coming weeks, and said that the current price action may act as a bullish trap.

In this scenario, temporary upward momentum may attract optimistic buyers before a sharp reversal leads to deeper losses. The analyst believes that this type of setup is often driven by market makers who aim to create liquidity before driving prices lower. As a result, he views the recent recovery not as a signal of a confirmed bottom, but rather as part of a larger corrective structure that has not yet been fully achieved.

A large part of its forecasts is related to expectations in traditional financial markets. He expects a major correction in the S&P 500 over the next two months, which could exceed the 35% decline.

Such a decline would be larger than the decline recorded during the coronavirus market collapse, and is expected to have a strong spillover effect on risk assets. Thus, Bitcoin is unlikely to remain isolated if stocks face a sharp decline, and instead could follow an accelerating decline on its own. This expected “domino effect” is central to his bearish thesis.

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The doctor won repeat His previous analysis suggested that Bitcoin would eventually fall to the $50,000 range or even lower after completing its current bullish phase.

Geopolitical turmoil continues

Bitcoin fell due to geopolitical tensions It escalated After the collapse of high-stakes negotiations between the United States and Iran in Islamabad. The talks failed to reach a solution, with both sides blaming each other. The situation worsened after US officials said that Iran was not ready to accept the conditions, while Tehran described the demands as unreasonable.

Markets reacted more sharply to subsequent developments, especially warning of a possible US naval blockade of the Strait of Hormuz, a critical global oil route. The threat of intercepting ships and escalating military action has raised fears of supply disruptions and a broader conflict.