Bitcoin Rally Hits $93K Amid Analyst Warnings of Liquidity Crisis

Bitcoin’s price action on Monday saw it rise over 1.1% during the Asian trading session, extending its rally toward a fifth consecutive daily gain and briefly touching the $93,000 level. This marks the cryptocurrency’s longest winning streak since early October. According to crypto analyst Doctor Profit, a significant technical development underpinned this move: Bitcoin broke above what he terms the ‘Silver Line,’ a short-term resistance level that had rejected price advances five times previously over the past month.

In a detailed weekend report, Doctor Profit noted that this breakout was followed by a clear retest and bullish confirmation. He interprets this pattern as Bitcoin defeating short-term bearish pressure and signaling readiness for a further move higher. This development aligns with his expectations over the past two months. After Bitcoin reached his earlier target of $80,000, he stated that upside levels between $97,000 and $107,000 were still possible before any continuation of a broader downside trend.

Despite the near-term bullish technicals, Doctor Profit’s overall stance remains firmly bearish. He revealed that he began buying BTC around $85,000 with the intention of selling those holdings within the $97,000 to $107,000 range. Based on current price action, he believes the market is now attempting this move. Consequently, he is executing a specific trading strategy: placing multiple short orders across the $97,000-$107,000 zone.

Doctor Profit described this as dividing trading capital into multiple parts to place staggered short positions, with the main aim of achieving the best possible average entry price. He also stated he is keeping earlier short positions from the $115,000-$125,000 range fully open, in case the market moves to those higher levels. Despite acknowledging the near-term upside potential, the analyst asserted he remains fully bearish on Bitcoin overall and continues to target prices below $70,000 in the coming months.

Doctor Profit’s bearish outlook is heavily rooted in macroeconomic factors, with a primary concern being signals of financial system stress. He highlighted the Federal Reserve’s provision of $106 billion in overnight repo lending to banks on New Year’s Day as a critical red flag. The analyst pointed to changes made to repo lending rules in September 2025, which increased potential liquidity access for individual banks, calling this a sign of deeper financial system fragility.

He argued that historical patterns show periods of banking stress and liquidity shortages have often coincided with bear markets. Doctor Profit added that insider selling, pressure on banks, and stress linked to silver markets further reinforce his bearish outlook. This perspective finds an echo in the commentary of Mr. Wall Street, who also warned that BTC faces downside risk despite a possible short-term rally.

Mr. Wall Street tweeted about risks amidst geopolitical tensions involving Venezuela and broader macroeconomic stress. In his analysis, he argued that markets are beginning to price in the risk of a broader global shock, which could pressure risk assets, including Bitcoin. While he expects a near-term relief rally designed to build liquidity, he views this move as likely temporary. Both analysts converge on a critical warning: the current Bitcoin rally, while technically sound in the short term, is operating under the shadow of a potential liquidity crisis that could precipitate a sharp downturn.