Stage 4 traps traders in sideways moves, causing regret and anxiety while retail sells at a loss.
Bitcoin fell 50% in 30 days; now, short-term bounces may happen between $57K–$60K.
Stage 5 could push BTC to $35K–$45K before stabilization and accumulation begin.
Bitcoin traders face heightened stress as the cryptocurrency enters Stage 4 of the ongoing bear market, according to crypto analyst Doctor Profit. The market has shifted from rapid mechanical declines to a prolonged sideways phase, creating a challenging environment for retail participants.
Doctor Profit’s framework, developed from observing every major Bitcoin bull and bear cycle, identifies six distinct stages. These stages repeat due to predictable human behavior, leverage positioning, and liquidity mechanics. Currently, Bitcoin is in the phase where psychological exhaustion dominates.
The cryptocurrency fell sharply from $97,000 in January to $60,000 in February, reflecting a brutal 50% drop in just 30 days. “The move from 97k in January to 60k in February, a crash of 50% within only 30 days, reflects that brutality,” Doctor Profit explained.
Stage 4 does not involve violent swings but emphasizes retail frustration and market exhaustion. This sideways period allows market makers to generate liquidity by trapping both breakout traders and breakdown sellers. Consequently, retail investors who missed selling earlier now capitulate at losses, amplifying the market’s psychological toll.
Stage 4 Dynamics: Dehydration and Liquidity
Stage 4 creates a “weak-hands selling zone,” Doctor Profit notes. Traders experience regret and anxiety as price stagnates. Many short-term holders sell prematurely, believing Bitcoin will drop another 30–40%. However, the breakdown into Stage 5, which could signal ultimate capitulation, may not occur for several months.
Doctor Profit has positioned buy orders between $57,000 and $60,000, anticipating short-term bounces within this sideways structure. “Understanding these stages allows you to operate structurally rather than emotionally,” he added.
Stage 5, characterized by total fear and dramatic forced selling, could push Bitcoin’s bottom to $35,000–$45,000. Stage 6 would then follow with stabilization and strategic accumulation by large holders.
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