Bitcoin Could Slide to $54K, Warns Analyst Behind October ATH Call

Doctor Profit, a widely followed crypto analyst, says bitcoin is currently forming a bearish flag pattern.

A combination of macro and market pressures — including a hawkish Federal Reserve, rising bond yields, and concerns surrounding Strategy (MSTR) — is already weighing on bitcoin. Now, a concerning technical setup is adding to the uncertainty.

The pattern in question is a bear flag, which typically signals continuation to the downside. According to the pseudonymous trader, who previously called bitcoin’s $126,000 cycle top and subsequent decline, a confirmed breakdown could initially push prices toward the $54,000 level.

“Bitcoin is forming a large bearish flag on the daily chart,” Doctor Profit wrote on X. “I expect a move down into the $54K–$56K range first, followed by a period of consolidation, and then another leg lower. In my view, the eventual bottom could form somewhere between $40K and $50K.”

Visually, a bear flag resembles an inverted flag on a chart. It begins with a sharp decline (the flagpole), followed by a temporary upward consolidation (the flag). A breakdown below the lower boundary of the flag often triggers a continuation move roughly equal in size to the initial drop.

In this case, the analyst points to bitcoin’s fall from its May peak near $82,000 to below $60,000 by early June as the flagpole, with the recent rebound toward $68,000 forming the flag structure.

Still, technical patterns are not definitive predictors. Interpretations can vary between analysts, and while bear flags often resolve lower, they can fail — opening the door to a bullish reversal instead.

That said, recent activity in the options market appears to support a cautious outlook. Traders have been accumulating put options, suggesting expectations for a near-term decline toward the $52,000 level.