- Reputed analyst shares 6 stages of the Bitcoin price action framework.
- The expert explains in detail how BTC is at stage 4 of 6.
- He then breaks down how he expects the price of BTC to react next.
A popular crypto analyst, Doctor Profit, known for his many accurate market predictions so far, has shared a special report for the week. The reputed analyst shares 6 stages of the Bitcoin price action framework and goes on to explain where BTC is on that framework at the current moment. Let’s dive into this deep, special weekly report and explore the possibilities for the price of BTC this year.
Reputed Analyst Shares 6 Stages of the Bitcoin Price Action Framework
Doctor Profit begins by stating that Bitcoin is currently in Stage 4 out of 6 in the current bear market. He then goes on to state that these six stages are of his own framework, developed through direct observation of every major Bitcoin bull and bear market so far. He says that the structure repeats because the underlying drivers repeat, which are liquidity mechanics, leverage positioning, and predictable human behavior under stress and current panic.
The expert then goes on to explain these six stages, starting with Stage 1, which is when an Euphoric market persists, and an insane buying appetite rules the space. He says that this stage occurred when the price of BTC was trading between the $115,000 and $125,000 price range. This stage ended with extended sideways movement at euphoric levels. During this time, everything looks strong, but in reality, the market is overloaded and overleveraged.
Following this is Stage 2, when the breakdown of a highly important psychological level began once BTC dropped below an important psychological mark, which was $100,000. The speed of the second move is noticeable and intentional. It happens very quickly and does not allow investors to rethink, recalculate, or properly manage their positions. The market acts before they can react.
Then came Stage 3, the fastest and most brutal move alongside a bear market confirmation. After Stage 2, the market needs to move even faster. Market makers cannot allow retail to realize what is happening; the speed needs to be maintained, so an even more brutal downside move follows. Stage 3 is the fastest of all phases and fully confirms the bear market with an extreme and rapid downside move, typically exceeding a 50% drawdown from the all-time high, which has been the case.
Where Is BTC Now, What to Expect?
This brings the market to Stage 4, where dehydration, depression, and perfect liquidity creation is in play. Stage 4 is not very violent or volatile, but it is extremely exhausting. The price moves sideways for a long period, often several months, within its own defined region. According to the expert, what comes next is a breakdown below the box that will bring the market into Stage 5, likely in a few months, not weeks.
Stage 5 will bring total fear, drama, and capitulation. He calls this the true capitulation phase. Here is where he expects BTC to bottom as low as the $35,000 – $40,000 price range before Stage 6 can hit, beginning stabilization and structural reversal. This final stage is a mix of total fear, volatility, and continued sideways movement. Selling pressure gradually disappears, and the market begins building the foundation for the next bull cycle.
