Bitcoin recently pulled back after hitting a new all-time high, causing some to worry. But a prominent crypto analyst, Doctor Profit, sees things differently. Let’s dive into his perspective.
The Golden Cross: A Powerful Signal
Doctor Profit dismisses those predicting a bear market, calling them “exit liquidity” for savvy investors. He highlights a significant chart pattern: the Golden Cross. This rare formation, appearing on the weekly Bitcoin chart, has historically signaled multi-month rallies. While it’s a long-term indicator, its consistent accuracy makes it a bullish sign.
Ignoring the Bearish Divergence
A bearish divergence also appeared, usually a sign of an impending price drop. However, Doctor Profit points to a similar divergence at $80,000 that didn’t lead to a crash. He attributes the current divergence to Donald Trump’s recent tariff announcement, deeming it insignificant.
Reasons for Optimism
Doctor Profit explains the recent Bitcoin price dip as normal profit-taking by short-term holders. Long-term holders remain confident. Other positive factors include:
- Low BlackRock outflows:
Despite Trump’s actions, large institutional investors aren’t selling off. - Bullish chart patterns: A “Cup and Handle” pattern suggests a breakout to $113,000-$115,000 is possible. Higher highs and higher lows since the $74,000 bottom indicate strong trend support.
- Above major moving averages: Bitcoin is trading above key moving averages (20-day, 50-day, and 200-day), a bullish sign.
- Positive MACD: The MACD (Moving Average Convergence Divergence) line crossing above the signal line on the weekly chart confirms bullish momentum.
The Bottom Line
Doctor Profit remains confident. He sees no reason for panic, citing the Golden Cross, the relatively insignificant bearish divergence, and several other positive technical indicators. The overall outlook, according to his analysis, remains bullish.
