Bitcoin Price Forecast: Navigating the Aftermath of a Psychological Breakdown This Week

Bitcoin just shattered a key psychological level—now what? The market's collective nerve is being tested as traders scramble to interpret the fallout. This isn't just another dip; it's a breach of a sentiment fortress that had bulls feeling invincible.

The Technical Crossroads

Watch the reaction around the old support zone. Does it now act as resistance? The price action over the next few days will be a masterclass in market memory and momentum. We're looking for either a swift reclaim or confirmation of a new, lower trading range. Volume will tell the real story—is this a flush of weak hands or the start of a deeper correction?

Sentiment Whiplash

Fear is back on the menu. The 'greed' that dominated charts last week has evaporated, replaced by a cautious, even pessimistic, scramble. This reset can be healthy—shaking out over-leveraged positions and setting a sturdier foundation. But it also opens the door for panic selling if negative momentum feeds on itself. Remember, in crypto, sentiment often moves faster than the underlying tech.

The Macro Shadow

Don't operate in a vacuum. Traditional finance tremors—shifting rate expectations, liquidity flows—echo loudly in Bitcoin's volatile halls. The digital gold narrative gets tested during these breakdowns. Is it a risk-off asset or the ultimate risk-on bet? This week might provide another data point, much to the chagrin of fund managers who still think it's just 'magic internet money.'

Bottom Line: Volatility is the only guarantee. The breakdown happened. This week is about the response—a battle between long-term conviction and short-term fear. Trade accordingly, and maybe keep some powder dry for the inevitable fireworks. After all, watching Wall Street try to price a decentralized asset is like watching a cartographer draw a map of the internet—a noble, but fundamentally flawed, endeavor.

Bitcoin Price Expectation For The Week

Crypto market expert Doctor Profit has released a compelling report examining the bitcoin price movement this week. In this analysis posted on X, he explained that Bitcoin has seen almost no meaningful price movement since November 2025. Price action remains stuck in a sideways consolidation, which the analyst views as a bearish sign that could eventually lead to another crash below the $80,000 zone. 

Doctor Profit revealed that he had anticipated Bitcoin’s current consolidation months earlier. He warned that sideways movement WOULD dominate the market before BTC faces a sharper pullback. That warning still stands, signaling a cautious, bearish outlook for the leading cryptocurrency.   

Because he expects Bitcoin to move lower, the analyst confirmed that he is still holding his short position from $115,000 and $125,000. He noted that additional shorts would only be considered if BTC revisits the $97,000-$107,000 range, and nowhere earlier. Doctor Profit also revealed that his first short, around $97,000, has already been filled, with another positioned near $98,000.

The analyst shared a detailed price chart showing all his short positions and Bitcoin’s “top territory” NEAR $120,000. Several additional orders have also been placed between $97,000 and $110,000 to manage risk during the cryptocurrency’s prolonged consolidation phase. 

Beyond technical structures, the report highlighted January 21, 2026, as a key date for the crypto market, as it marks the expected release of the CLARITY Act bill. Doctor Profit stressed that once the bill is published, it would give institutions and traders a clear view of the regulatory framework, showing who regulates crypto, how exchanges would be treated, and whether the new rules would favor or restrict the industry. 

Even without an immediate vote by the US Senate Banking Committee, Doctor Profit noted that the bill’s release alone could MOVE markets. He explained that clarity eliminates uncertainty in the market, which is a powerful catalyst for price action. Notably, the vote on the bill has been scheduled for January 27, with its outcome set to shape the future of crypto regulations and also influence price movements. 

Analyst Remains Extremely Bearish On Bitcoin

Doctor Profit has said in his report that he remains extremely bearish on the market, expecting another leg down that would officially confirm his bear market thesis. He stated that there have been no relevant updates to invalidate his outlook or support a new bullish narrative. His chart forecasts a potential drop toward the $70,000- $75,000 range. With Bitcoin currently trading above $92,500, that would mean a decline of over 20%.