The Bitcoin (BTC) rally isn’t over yet, but the downsides aren’t over yet

BTC could soar toward six figures, but one analyst warns this move could be the last leg before a deep recession.

Bitcoin (BTC) rose more than 1.1% during Monday’s Asian trading session as it extended its rally to a fifth consecutive daily gain. Interestingly, this is the longest winning streak since early October, with the price briefly reaching $93,000.

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

Bitcoin Breaks the ‘Silver Line’

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

Doctor Profit noted that this development is in line with his expectations of the past two months. After reaching its previous target of $80,000, Bitcoin stated that upside levels between $97,000 and $107,000 were still possible before a broader downtrend continued. He reiterated that he started buying BTC at around $85,000, intending to sell these shares within the range of $97,000 to $107,000. Based on the current price action, he said the market appears to be attempting this move now.

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

Despite acknowledging the upside in the near term, the analyst maintained that he remains completely 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 of the biggest concerns raised was the $106 billion in repo loans the Federal Reserve made to banks on New Year’s Day. He pointed to changes made to repo lending rules in September 2025, which increased potential access to liquidity for individual banks, calling this a sign of deeper stress in the financial system.

Doctor Profit also said that 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 related to silver markets further reinforce his bearish outlook.

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Greater risk ahead?

Market commentator Mr Wall Street too echoed a similar concern when he tweeted that BTC faces downside risk despite a possible short-term rally amid geopolitical tensions involving Venezuela and macroeconomic stress. In his latest analysis, he argued that markets are starting to price in the risk of a broader global shock, which could put pressure on risky assets including BTC.

While he expects a near-term relief rally aimed at building liquidity, this move is likely to be temporary.