Analyst: Bitcoin may face a shakeout after a short-term surge, beware of a double-sided market in the future

According to the latest forecast from Doctor Profit, #Bitcoin may first climb to the $83k - $87k range, then experience a sharp decline, and this "brutal cleansing" will cause losses for both bulls and bears.

Doctor Profit's trading strategy shows that after establishing a long position at $71,000, he plans to take profits between $83,000 and $85,000, and increase his short positions.

Currently, he still holds a $120,000 short position; over 90% of his short orders are concentrated in the $79,000 to $84,000 range. He firmly believes the market will first break above $83,000, which is also the main reason for moving his short entry point higher.

He considers around $87,700 as the next resistance level, which could serve as an extension point before further price declines. However, his long-term outlook remains unchanged, still bearish below $50,000.

He also stated that investors who go short too early are fueling the market rally, and their positions will be liquidated during the upward move, as a true downtrend is brewing.

On the macroeconomic front, Doctor Profit believes that Wednesday's FOMC meeting will have limited impact on interest rates, but notes that this could be Jerome Powell's last press conference as chairman.

Additionally, the market widely expects Kevin Warsh to succeed Powell as Federal Reserve Chair in May, with rate cuts possibly coming as early as June or September. But the market remains skeptical, thinking that a dovish shift may not materialize as expected.

Meanwhile, market sentiment has shifted from last week's "extreme pessimism" to an "extreme FOMO mode" after Bitcoin rebounded to $78,000 on April 23. However, Santiment views this enthusiasm as a "clear warning signal," rather than good news.

Other analysts have differing opinions. Ali Martinez believes that after Bitcoin returns to the $73,700 MVRV range, the next major resistance is at $96,000, but if it breaks below that level, it could drop to $55,000;

EGRAG CRYPTO thinks the worst-case scenario is $55,000, but also predicts that if BTC returns to $90,000, it could hit a new all-time high;

However, Michaël van de Poppe is relatively optimistic, believing that breaking through $84,000 to $87,000 could signal the end of the bear market, with $100,000 being his most optimistic expectation.