Bitcoin (BTC) and the stock market have experienced a sharp decline price fluctuations and declines since 2025. Due to this volatility, a crypto analyst has warned that the market correction could further intensify in 2026. In a detailed analysis, he outlines a bearish scenario for Bitcoin, suggesting the flagship cryptocurrency. could soon face another price crash amid continued downward pressure on the broader stock market.
Analyst warns of major Bitcoin and stock market decline
Market analyst Doctor Profit has expressed concerns about the direction of the crypto and traditional markets. warning that both Bitcoin and stocks are in a dire situation right now bear market. In a technical breakdown on X last Monday, the expert highlighted three major bearish setups forming simultaneously in Bitcoin.
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He emphasized a huge Bearish divergence on the weekly and monthly charts, a clear bearish flag points to a potential decline towards $70,000, and a possible Head and shoulders pattern that could still play out. While he acknowledged that Bitcoin could still experience short-term price increases and briefly rise to the $97,000-$107,000 range due to strong liquidity, he said the ultimate target remains $70,000.
Doctor Profit emphasized that Bitcoin’s potential drop to $70,000 could go either way. It can be done from the bearish flag to that downside target or complete the head-and-shoulders pattern before you reach $70,000. He stated that he will not add any new short positions at current prices, but plans to aggressively increase them from $115,000 to $125,000 if Bitcoin moves into the $97,000 to $107,000 range.
The analyst painted a similarly bleak picture for the stock market. He said he was “ultra-bearish” on both Bitcoin and the financial system. He also noted that banks are under pressure and forced liquidations in precious metals such as silver are causing turmoil in the broader market.
Furthermore, Doctor Profit noted that insider activity is showing clear signs of panic among investors, with record sales figures since August 2025. This makes the analyst believe that the market is heading for a 2008-style crash. Therefore, he has concluded that the current The market conditions are too extreme.
On the plus side, Doctor Profit said that while he is short positions on stocks and Bitcoin, he remains bullish on gold and silver. He explained that any upside in the $97,000-$107,000 range will prompt him to increase his short position and move the spot profits for BTC from $85,000 to these positions.
Crypto markets brace for major US decisions
Towards the end of his analysis, Doctor Profit discussed upcoming events that could impact Bitcoin and the broader financial markets this week. He stated that the US CPI inflation The 2.7% forecast will be released this Tuesday. Apart from this, few market-moving events are expected to occur for the rest of the week.
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Doctor Profit also highlighted January 15 as an important date because US lawmakers will vote on it the CLARITY Act. He explained that if the bill is passed, it will move closer to law, establishing clear rules and oversight for the crypto market.
Featured image from Pixabay, chart from Tradingview.com