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As Bitcoin (BTC) surges past the critical $80,000 mark, investors are abuzz with speculation about whether the cryptocurrency has reached its bottom after a recent dip to $74,000.
Market expert Doctor Profit shared insights on social media platform X (formerly Twitter), outlining a pivotal moment for Bitcoin as it stabilizes above a key trendline he calls the “Golden Line.” This trendline, which has held since early 2023, represents a crucial support level for the cryptocurrency.
Is A Bullish Reversal On The Horizon?
Doctor Profit noted that the price retracement to $74,000 hit exactly where predicted, bouncing back above the Golden Line. He emphasized the significance of this threshold, warning that if BTC closes a weekly candle below it, “bulls are cooked.” Currently, with Bitcoin holding strong above this line, many believe a bullish reversal could be in sight.
In his analysis, Doctor Profit laid out two possible scenarios for Bitcoin’s future. The first scenario suggests a potential breakdown into the $50,000 to $60,000 range, representing a substantial reset for the market—a “Black Swan” event.
The second scenario envisions a correction to the $70,000 to $74,000 range, followed by a bounce, a scenario that many investors are hoping for based on recent market dynamics. With Bitcoin hitting the $74,000 mark as expected, the question looms: has the bottom been reached, or is further pain ahead?
Upcoming CPI Report Could Spark Bitcoin Rally
Revealing his trading strategy, Doctor Profit stated that he bought back into Bitcoin at around $77,000, just prior to a significant market announcement. He described his approach as a blend of precision and adaptability, emphasizing the need to be proactive rather than reactive in trading.
Currently, he maintains a balanced portfolio consisting of 50% in cash, 50% in spot BTC, while also holding onto 50% of a short position as a hedge.
The upcoming Consumer Price Index (CPI) report holds particular significance for Bitcoin’s trajectory. Doctor Profit suggests that a cooler-than-expected CPI print could pave the way for the Federal Reserve to relax its monetary policies, potentially spurring a rally in Bitcoin prices from April through July.
He noted that recent trends in M2 liquidity—an essential measure of the money supply—are beginning to rise after a long period of contraction, which historically bodes well for risk assets like Bitcoin.
“The market moves after liquidity, not during the printing process,” he explained, predicting that the effects of increased liquidity will soon manifest in Bitcoin’s price.
Looking beyond, Doctor Profit highlighted the possibility of a US–China trade breakthrough, which could significantly shift market sentiment. If tariffs are rolled back and tensions ease, risk assets—including Bitcoin—could experience explosive growth. “Markets won’t wait for these changes,” he cautioned, urging investors to remain vigilant and adaptive.
Featured image from DALL-E, chart from TradingView.com
