Doctor Profit warns of extended bearish phase for Bitcoin and crypto markets into 2026

Markets show optimism after recent gains, yet Doctor Profit reiterates a gloomy outlook for the crypto sector through the rest of 2026.

Analyst doubles down on bearish forecast despite price strength

Doctor Profit, a well-followed and silver-tongued analyst, has once again repeated his bearish expectations for the coming months. This stance comes even as BTC trades back in the $90,000 price range and ETH holds above $3,000. Moreover, the CMC Fear & Greed Index currently shows a neutral reading, suggesting balanced sentiment rather than panic.

However, many market participants are hoping that this backdrop will fuel a new crypto price rally. In contrast, the analyst insists that the broader structure remains vulnerable. He argues that current optimism understates the risk of another downward leg in major assets.

Bitcoin report highlights sideways action as a bearish signal

In his latest weekly Bitcoin report, the analyst expands his focus beyond digital assets to include stock market dynamics. He notes that since November there has been almost no meaningful change in the price of BTC in his view. According to him, the asset has been locked in a prolonged bitcoin sideways consolidation phase.

He considers this sideways movement to be inherently bearish at this stage of the cycle. That said, he maintains that it is only a matter of time before BTC revisits levels below $80,000. This scenario, he believes, would confirm that the consolidation has been a distribution pattern rather than healthy accumulation.

For now, BTC remains in this sideways range exactly as he predicted in November. Back then, he called for a long consolidation that would eventually lead to a fresh leg down. Moreover, he stresses that nothing in recent price action has invalidated that call in his framework.

Short positions and detailed risk management plan

The analyst continues to hold his short positions that were initiated in the $115,000-$125,000 price range. He also reveals a clear plan to add more shorts if the market pushes higher. Specifically, he is prepared to increase exposure should BTC move into the $97,000-$107,000 zone, which he views as a prime area for fresh entries.

However, he is explicit that this is the only area where he would consider adding further short positions. He emphasizes that he will not stack additional shorts earlier, as patience is central to his approach. This disciplined stance reflects his broader focus on risk management trading rather than emotional reactions.

To illustrate his method, he asks followers to imagine a trading portfolio of $10,000. He would divide this capital into 12 orders spread between $97,000 and $107,000. This distribution means each order would be sized at $833 ($10,000 ÷ 12), allowing for incremental entries if price trades through the target zone.

These new orders are layered on top of the existing short exposure from $115,000-$125,000, not used as replacements. Moreover, this structure allows him to adjust the new orders more flexibly as conditions evolve. He argues that this approach delivers a cleaner average entry strategy during long consolidations.

That said, he urges traders to hedge risk rather than gamble on a single level or outcome. By spreading orders and adjusting sizing, he believes market participants can better navigate multiple scenarios. He frames his example as a blueprint for those seeking to maximize potential gains while still respecting downside risk.

Regulatory milestones and the CLARITY Act

In the final part of his report, the analyst shifts focus to regulatory catalysts that could reshape market structure. He highlights January 21 as a key date, as this is when the CLARITY Act bill text is expected to be released. On that day, markets and institutions will finally be able to read the exact proposed rules.

The text will detail which agencies regulate crypto, how exchanges are treated, and whether the framework leans restrictive or supportive. Moreover, even before any formal vote, this new information alone could move prices significantly. Better crypto regulatory clarity tends to reduce uncertainty, which is often a major driver of volatility.

According to the timeline he references, the bill text will be published on Jan 21 and then voted on Jan 27. This short window could concentrate volatility around those dates. He notes that this sequence will ultimately decide how the market interprets the clarity act impact in the months ahead.

Bearish stance maintained through the rest of 2026

Despite the potential for sharp swings around regulatory announcements, the analyst is not shifting his broader bias. He continues to expect at least one more major leg down in digital assets. Moreover, he stresses that Doctor Profit is not positioning for a brief correction but for a sustained period of weakness extending through 2026.

In summary, he sees strong prices in BTC and ETH, neutral sentiment, and upcoming regulatory milestones as a setup for disappointment rather than euphoria. That said, his framework still allows for short-term rallies into the $97,000-$107,000 region before any breakdown. Until clear evidence emerges to the contrary, he plans to stick with his carefully structured bearish positioning.