Bitcoin (BTC) Rally Isn’t Over Yet, But Downside Isn’t Done

Bitcoin (BTC) rose over 1.1% during Monday’s Asian trading session, as it extended its rally toward a fifth straight daily gain. Interestingly, this has been the longest winning streak since early October, as it briefly touched $93,000.

While BTC has defeated short-term bears, a liquidity crisis may still trigger a sharp crash, according to market experts.

Bitcoin Breaks the “Silver Line”

Crypto analyst Doctor Profit identified that Bitcoin has, for the first time in a month, broken above what he calls the “Silver Line.” This is a short-term resistance level that had rejected price advances five times previously. In a detailed weekend report, the analyst said that this breakout was followed by a clear retest and bullish confirmation, which he interprets as BTC defeating short-term bearish pressure and signaling readiness for a further move higher.

Doctor Profit found that this development aligns with his expectations over the past two months. After Bitcoin reached his earlier target of $80,000, he stated that upside levels between $97,000 and $107,000 were still possible before any continuation of a broader downside trend. He reiterated that he began buying BTC around $85,000, with the intention of selling those holdings within the $97,000 to $107,000 range. Based on current price action, he said the market now appears to be attempting this move.

As such, Doctor Profit explained that he is placing multiple short orders across the $97,000-$107,000 zone and described the strategy as dividing trading capital into multiple parts to place staggered short positions. The main aim is to achieve the best possible average entry price. He also said he is keeping earlier short positions from the $115,000-$125,000 range fully open, in case the market moves to those higher levels.

Despite acknowledging the near-term upside, the analyst asserted that he remains fully bearish on Bitcoin overall and continues to target prices below $70,000 in the coming months. He cited macroeconomic factors as crucial support for this view. One major concern highlighted was the Federal Reserve’s $106 billion in overnight repo lending to banks on New Year’s Day. He pointed to changes made to repo lending rules in September 2025, which increased potential liquidity access for individual banks, and called this a sign of deeper financial system stress.

Doctor Profit also said historical patterns show that periods of banking stress and liquidity shortages have often coincided with bear markets. He added that insider selling, pressure on banks, and stress linked to silver markets further reinforce his bearish outlook.

Bigger Risk Ahead?

Market commentator Mr Wall Street also echoed a similar concern as he tweeted that BTC faces downside risk despite a possible short-term rally amidst geopolitical tensions involving Venezuela and macroeconomic stress. In his latest breakdown, he argued that markets are beginning to price in the risk of a broader global shock, which could pressure risk assets, including BTC.

While he expects a near-term relief rally designed to build liquidity, this move is likely temporary.

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