Bitcoin goes through various cycles that significantly influence its price development. Each of these cycles tells its own story and explains the market's upward and downward movements. Doctor Profit, a crypto expert with over 300,000 followers on X, provides a detailed analysis of these cycles and shares his price predictions.
Capitulation Phase: The End of the Bull Market
In 2021, Bitcoin peaked at 60,000 US dollars, followed by a massive drop to 18,000 US dollars, identified by Doctor Profit as the capitulation phase. The absolute bottom of this phase was reached during the FTX crash, when the price fell to 15,400 US dollars. Doctor Profit emphasizes that this price level is historically significant and serves as a long-term bottom. Investors who entered at prices between 16,000 and 18,000 US dollars caught the absolute low.
Pre-Bull Market: The Prelude to the Next Rally
The pre-bull market phase was characterized by resistance at 38,500 US dollars. Doctor Profit explains that this area needed to be breached to move into the second pre-bull phase. The rise from the 20,000 US dollars region to 38,500 US dollars was driven by the influence of major market participants such as Binance, CZ, Justin Sun, and Bitfinex whales. Notably, there was pumping of BUSD into newly launched stablecoins, observed in September and October 2023. On September 16, 2023, Justin Sun minted 815 million TUSD and made massive Bitcoin purchases. In June 2023, Binance additionally minted 1 billion TUSD, leading to daily market manipulations amid low trading volumes. Simultaneously, BlackRock filed a Bitcoin ETF application in June 2023, as Bitcoin rose above the 200-week moving average for the first time since the bear market began.
Second Pre-Bull Phase: The Breakthrough to Higher Levels
The breakthrough into the 48,500 US dollars range marked the beginning of the second pre-bull phase, according to Doctor Profit. This phase was driven by expectations of an imminent ETF approval by BlackRock, leading to a massive price increase. The area between 38,500 and 48,500 US dollars is referred to by Doctor Profit as the "BlackRock region," dominated by institutional investors and serving as a new support zone.
Golden Bull Market: Traditional Finance Enters the Scene
After breaking through 48,500 US dollars, the so-called golden bull market began. This area, extending up to 74,000 US dollars, became the entry point for investors from the traditional financial world. According to Doctor Profit, these investors will energetically defend this area during the bull market, especially the zone between 48,000 and 52,000 US dollars. Doctor Profit points out that this region forms the foundation for the upcoming bull market, making it unlikely that Bitcoin will fall back to these levels.
Super Cycle: On the Path to New All-Time Highs
The super cycle, as described by Doctor Profit, represents a phase of extreme market movements, where daily increases of 10-30% could become the norm. The first target of this super cycle is set at 86,000 US dollars, with further possible highs ranging between 110,000 and 120,000 US dollars in the worst case, and between 180,000 and 220,000 US dollars in the best case. Doctor Profit expects the super cycle to begin in the first months after the Bitcoin halving and sees every dip to the lower end of the current price range as a massive buying opportunity.
