Crypto analyst Doctor Profit has issued a stark warning to traders, arguing that Bitcoin’s latest bounce is not the start of a recovery, but a liquidity trap engineered to liquidate both bulls and bears.
In a detailed post shared on X, he described the current setup as “a textbook bear-market manipulation,” where short-term rallies are used to lure late buyers before driving prices lower again. According to Doctor Profit, market makers are likely targeting the $116,500 zone to trigger short liquidations and refill liquidity before the next leg down.
“Nothing moves in a straight candle,” he wrote. “Every bounce is designed to fool traders, bulls get trapped first, then bears. Liquidity needs to be cleared on both sides before the real move begins.”
The Mechanics Behind the Move
The chart he shared shows alternating zones of liquidity grabs, green boxes above recent highs and red below local lows, reflecting how large players exploit leveraged positioning. These “stop hunts,” he explained, are part of a controlled process that keeps retail traders guessing while institutions reposition.
Doctor Profit emphasized that this pattern has repeated multiple times over recent weeks, adding: “I’m expecting $116K, not because I’m bullish, but because it’s a manipulation target to liquidate bears before sending Bitcoin to new local lows.”
Takeaway
The message underscores a theme many analysts echo: patience over prediction. With volatility returning and leverage resetting, short-term rallies may be more about liquidity engineering than genuine demand, a reminder that, as Doctor Profit put it, “education is the only hedge against manipulation.”