3 Major Warning Signs Suggest Bitcoin’s Bottom Is Still Not In
TL;DR
Bitcoin's price recently surged to nearly $83,000 but has since dropped to $78,000, raising concerns about whether the bottom is truly in. Analysts are highlighting warning signs, including high profit margins among traders.
Key points
- Bitcoin surged to nearly $83,000 before dropping to $78,000
- Analysts express doubts about whether Bitcoin's bottom is in
- Average trader's realized profit margin reached 17%
- High profit margins may lead traders to exit positions
- Historical context links current margins to past price drops
After dumping to $60,000 during the early February crash, bitcoin rebounded swiftly and jumped to almost $83,000 a week ago, posting a massive 38% increase. This caused many analysts to speculate whether the bear market had ended.
However, the price action in the past few days has been contradictory, and BTC slipped to a two-week low of $78,000 yesterday. Analysts are not so convinced now that the bottom is in, and here are some of their warning shots.
P/L at High Levels
Ali Martinez brought up the average trader’s realized profit margin, which has reached 17%. He believes this is a “major warning sign” as the metric has hit its highest level since October 2025, shortly before the massive crash that wiped out over $19 billion in leveraged positions and was the beginning of a prolonged downtrend that culminated (for now) with a 53% drop from $126,000 to $60,000. He explained that since the average investor is now sitting on substantial gains, they might be “looking to exit.”
“What stands out to me is the historical context. The last time profit margins hit 17% while Bitcoin was testing its 200-day moving average as resistance was in March 2022.
That specific alignment signaled the exact moment the local top was in before the downtrend resumed in earnest.”
Doctor Profit Still Bearish
One of the few analysts who hasn’t changed their perspective on the current market environment is Doctor Profit. His bearish predictions began around the October 2025 peak, and, as his latest post shows, he has been putting his money where his mouth is, shorting the cryptocurrency from $120,000.
Moreover, the analyst warned a week ago that the rebound to $80,000 might be another bear trap. His new bearish targets are a drop to $50,000 or even lower if the broader macro conditions worsen.
In his latest post, he warned once again that most traders are “not ready for what’s coming.” The chart above doubles down on a path toward $50,000.
$BTC: No one is ready for whats coming , the current status is as follow:
Q&A
What are the current warning signs for Bitcoin's price?
Analysts are concerned about high profit margins among traders, which could indicate a potential exit strategy and signal that Bitcoin's bottom is not yet in.
How much did Bitcoin's price increase before the recent drop?
Bitcoin's price increased by 38%, rising from $60,000 to almost $83,000 before dropping to a two-week low of $78,000.
What historical context is relevant to Bitcoin's current profit margins?
The last time Bitcoin's profit margins reached 17% was in March 2022, which preceded a significant downtrend in its price.
What happened during the October 2025 crash related to Bitcoin?
The October 2025 crash resulted in a loss of over $19 billion in leveraged positions, marking the beginning of a prolonged downtrend for Bitcoin.
