Bitcoin (BTC) and the stock market have experienced sharp price swings and 
declines since 2025. Because of this volatility, a crypto analyst has warned 
that the market correction could intensify further in 2026. In a detailed 
analysis, he outlines a bearish scenario for Bitcoin, suggesting the flagship 
cryptocurrency could soon face another price crash amid persistent downward 
pressure in the broader stock market. Analyst Warns Of Major Bitcoin And Stock 
Market Plunge Market analyst Doctor Profit has raised concerns about the 
direction of the crypto and traditional markets, warning that both Bitcoin and 
stocks are currently in a severe bear market. In a technical breakdown on X 
this Monday, the expert highlighted three major bearish setups forming 
simultaneously in Bitcoin. Related Reading: Why The $2.9 Billion Bitcoin Whale 
Buy Could Spell Doom For The Market He highlighted a massive Bearish 
Divergence on the weekly and monthly charts, a clear bearish flag signaling a 
potential drop toward $70,000, and a possible Head and Shoulder pattern that 
could still play out. While he acknowledged that Bitcoin could still 
experience short-term price increases and briefly rise toward the 
$97,000-$107,000 range due to strong liquidity, he said that the ultimate 
target remains $70,000. Doctor Profit emphasized that Bitcoin’s potential 
decline to $70,000 could go two ways. It could either break out of the bearish 
flag to that downside target or complete the Head and Shoulders pattern before 
reaching $70,000. He stated that he will not add new short positions at 
current prices but plans to increase them aggressively from $115,000 to 
$125,000 if Bitcoin moves into the $97,000 to $107,000 range. The analyst 
painted a similarly grim picture for the stock market. He said he was “ultra- 
bearish” on both Bitcoin and the financial system. He also noted that the 
banks are stressed and that forced liquidations in precious metals like Silver 
are creating ripples across the broader market. Additionally, Doctor Profit 
noted that insider activity shows clear signs of panic among investors, with 
record levels of selling since August 2025. Because of this, the analyst 
believes that the market is heading for a 2008-style crash. Consequently, he 
has concluded that the current market conditions are too extreme. On the 
bright side, Doctor Profit said that although he maintains short positions on 
stocks and Bitcoin, he remains bullish on Gold and Silver. He explained that 
any upside to the $97,000-$107,000 range will prompt him to increase his short 
exposure and roll spot profits for BTC from $85,000 into these positions. 
Crypto Markets Brace For Key US Decisions Toward the end of his analysis, 
Doctor Profit discussed upcoming events that could influence Bitcoin and the 
broader financial markets this week. He stated that the US CPI inflation 
forecast of 2.7% will be released this Tuesday. Other than this, the rest of 
the week is expected to have few market-moving events. Related Reading: 
Bitcoin Price Hits Crash Line, But This Time Is Not Random Doctor Profit has 
also highlighted January 15 as an important date because US lawmakers will 
vote on the CLARITY Act. He explained that if the bill passes, it will move 
closer to becoming law, setting clear rules and oversight for the crypto 
market. Featured image from Pixabay, chart from Tradingview.com

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