Bitcoin & Stocks: Expert Warns of Potential Major Crash in 2026 – What Investors Need to Know
The cryptocurrency and stock markets have experienced significant volatility since 2025, leaving investors on edge. A leading crypto analyst, Doctor Profit, is now warning of a potential intensification of the market correction in 2026, predicting a possible major plunge for both Bitcoin (BTC) and traditional stocks. This analysis delves into the factors driving this bearish outlook, the potential price targets, and what investors should consider in the current climate. Understanding these risks is crucial for navigating the evolving financial landscape.
Analyst Doctor Profit Predicts a Severe Bear Market
Doctor Profit, a well-respected market analyst, has expressed strong concerns about the current state of both the crypto and traditional financial markets. He believes we are firmly entrenched in a severe bear market, and his recent technical analysis on X (formerly Twitter) highlights three key bearish signals forming simultaneously in Bitcoin. These signals suggest a heightened risk of a significant price decline.
Key Bearish Indicators for Bitcoin
- Bearish Divergence: A massive bearish divergence is apparent on both the weekly and monthly charts, indicating weakening momentum despite recent price action.
- Bearish Flag: A clear bearish flag pattern has emerged, signaling a potential drop towards the $70,000 level.
- Head and Shoulders Pattern: A possible Head and Shoulders pattern is developing, which, if completed, could further accelerate the downward trend.
While acknowledging the possibility of short-term price rallies, potentially pushing Bitcoin towards the $97,000-$107,000 range due to strong liquidity, Doctor Profit maintains that the ultimate target remains $70,000. He emphasizes that any upside movement should be viewed as a potential selling opportunity.
“I will not add new short positions at current prices but plan to increase them aggressively from $115,000 to $125,000 if Bitcoin moves into the $97,000 to $107,000 range.” – Doctor Profit
Source: Chart from Doctor Profit on X
Grim Outlook for the Stock Market and Financial System
Doctor Profit’s bearish sentiment extends beyond Bitcoin to encompass the broader stock market and the financial system as a whole. He describes himself as “ultra-bearish” on both, citing stress within the banking sector and forced liquidations in precious metals like Silver as contributing factors to market instability. These events are creating ripple effects across various asset classes.
Adding to the concern, Doctor Profit points to insider activity, revealing record levels of selling since August 2025. This suggests a growing sense of panic among investors, leading him to believe that the market is heading for a crash reminiscent of 2008. He believes current market conditions are excessively extreme and unsustainable.
A Contrarian View: Bullish on Gold and Silver
Despite his bearish outlook on Bitcoin and stocks, Doctor Profit remains bullish on Gold and Silver. He plans to increase his exposure to these precious metals, rolling profits from Bitcoin (specifically from the $85,000 level) into these positions if Bitcoin reaches the $97,000-$107,000 range. This strategy reflects a belief that Gold and Silver will serve as safe-haven assets during a broader market downturn.
Key US Decisions Looming: CPI and the CLARITY Act
Several upcoming events in the United States could significantly influence Bitcoin and the financial markets in the coming week. Doctor Profit highlights two key dates:
- US CPI Inflation Report (Tuesday): The release of the US CPI inflation forecast of 2.7% is expected to be a major market mover.
- CLARITY Act Vote (January 15): US lawmakers will vote on the CLARITY Act, which aims to establish clear rules and oversight for the crypto market. Passage of this bill could bring greater regulatory certainty to the industry.
The CLARITY Act, if passed, represents a significant step towards mainstream adoption of cryptocurrency by providing a more defined legal framework. However, the impact of the bill on Bitcoin’s price remains uncertain.
Navigating the Volatility: Investor Strategies
Given the potential for increased volatility and a possible market correction, investors should consider the following strategies:
- Diversification: Don't put all your eggs in one basket. Diversify your portfolio across different asset classes, including stocks, bonds, commodities, and potentially, Bitcoin (with careful consideration of the risks).
- Risk Management: Implement robust risk management strategies, such as setting stop-loss orders to limit potential losses.
- Due Diligence: Thoroughly research any investment before committing capital. Understand the risks involved and only invest what you can afford to lose.
- Stay Informed: Keep abreast of market developments and economic indicators that could impact your investments.
The current market environment demands caution and a well-defined investment strategy. While Bitcoin continues to attract attention, investors must be aware of the potential risks and prepare for possible further declines. The insights from analysts like Doctor Profit provide valuable perspectives, but ultimately, investment decisions should be based on individual risk tolerance and financial goals.
BTC is currently trading at $92,333 on the 1D chart (as of January 12, 2026) | Source: BTCUSDT on Tradingview.com
BTC trading at $92,333 on the 1D chart | Source: BTCUSDT on Tradingview.com
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always consult with a qualified financial advisor before making any investment decisions.