The cryptocurrency market has been struggling since the beginning of October. Bitcoin (BTC), the largest cryptocurrency, dropped from its high of $126,000 to around $90,000. This has caused concern among investors.
A market analyst who calls himself Mr. Wall Street believes Bitcoin might fall even further. He thinks it could temporarily rise to $100,000, but a bigger drop would follow. According to him, a mix of bad economic conditions, slow actions from the U.S. Federal Reserve, and worrying market signals could mean a tougher time ahead for Bitcoin.
Breaking Key Bitcoin Levels
Mr. Wall Street explained that he started feeling negative about Bitcoin’s short-term and medium-term future back in November. He argues that the U.S. economy has started weakening since early 2025. He blames this on the Federal Reserve, which acted too slowly to fix the economy. For example, the Fed didn’t lower interest rates quickly enough, even though job loss rates were rising and prices were stabilizing.
Here’s what happened: Interest rates are like a tool for controlling money flow. Lowering rates can make borrowing money cheaper and help the economy. Mr. Wall Street thinks this delay has caused harm. Fixing the problem now might need much bigger steps, like injecting large amounts of money into the economy instead of making small policy changes. Until that happens, he believes we’ll see Bitcoin’s price and other assets drop closer to what he calls their “fair value,” or realistic price.
On the technical side, Mr. Wall Street said Bitcoin has already shown signs of a downturn. For example:
- It ended the week below its 50-week exponential moving average (EMA), which is a sign of a weakening trend.
- The monthly MACD indicator gave a bearish signal, which often means prices are likely to drop.
- The Relative Strength Index (RSI) showed that momentum was slowing, another signal that the market could fall.
He also pointed out other signs of financial stress. For instance, companies are heavily borrowing money, and major technology and artificial intelligence-related stocks in the U.S. are declining. In addition, if Japan raises its interest rates, this could worsen the situation. Market makers—companies that help create liquidity by buying and selling assets—might sell large amounts of Bitcoin when prices reach certain levels.
The Path Ahead: Bitcoin Through 2026
Mr. Wall Street doesn’t agree with claims that the Federal Reserve has already started quantitative easing (QE). QE is when central banks buy financial assets like government bonds to inject more money into the economy. He believes what the Fed is doing now are isolated actions, not a full change in policy.
Even though Mr. Wall Street sees Bitcoin as a strong long-term investment because it has a fixed supply, he says things might get worse in the near future. He predicts that Bitcoin will rise to test the 50-week EMA at around $100,000. But after that, he thinks it could fall to between $68,000 and $74,000. In the final months of 2026, he believes Bitcoin prices could drop as low as $54,000 to $60,000.
Another well-known crypto analyst, Doctor Profit, agrees with Mr. Wall Street. Doctor Profit also says Bitcoin is still in a bear market, a time when prices generally drop for an extended period. He thinks the lowest price hasn’t been reached yet.
The future of Bitcoin looks uncertain right now. While some experts believe it will recover in the long term, others warn that more price drops could happen before that recovery begins.