Bitcoin traders are now in Stage 4 of the ongoing bear market, a period dominated by psychological exhaustion rather than violent price swings, according to crypto analyst Doctor Profit. The market has shifted from a rapid mechanical decline to a prolonged sideways grind.
Doctor Profit’s framework, built on observing every major Bitcoin bull and bear cycle, identifies six distinct stages driven by human behavior, leverage positions, and liquidity mechanics. The current stage traps retail participants in a zone of regret and anxiety.
50% Drop in 30 Days; Buy Orders Set at $57k–$60k
Bitcoin crashed from $97,000 in January to $60,000 in February — a brutal 50% decline in just 30 days. “The move from 97k to 60k within 30 days reflects the brutality,” Doctor Profit explained. He has placed buy orders between $57,000 and $60,000, anticipating short-term bounces within this sideways structure.
Stage 4 does not feature violent swings but emphasizes retail frustration and market exhaustion. Market makers generate liquidity by trapping both breakout buyers and breakdown sellers. Retail investors who missed selling earlier now capitulate at losses, amplifying the psychological toll.
Weak-Hands Selling Zone; Stage 5 Could Push to $35k–$45k
Doctor Profit calls Stage 4 a “weak-hands selling zone.” Many short-term holders sell prematurely, fearing another 30–40% drop. However, the true panic exit — Stage 5 — may not come for months. That phase, characterized by total fear and forced liquidations, could drive Bitcoin’s bottom to $35,000–$45,000. Stage 6 would then bring stabilization and accumulation by large holders.
“Understanding these stages allows you to operate structurally rather than emotionally,” Doctor Profit added.