Bitcoin (CRYPTO: BTC) trades below $84,000 Wednesday morning, and one trader who called last October’s crash says he’s shorting the market again.
Why Doctor Profit Is Betting Against Bitcoin
Widely-followed crypto trader Doctor Profit posted on X that he sold his entire Bitcoin position near $124,000 last October and built a short position ahead of the Oct. 10 crash, when altcoins lost up to 95% in hours.
He closed those shorts near $60,000 and switched to buying spot, the same level he had called for since the top.
A year later now, Doctor Profit says he’s shorting again between $86,500 and $89,500, with his largest orders waiting between $88,000 and $89,500. He’s adding to the position on every rally into that zone.
What Triggered Wednesday’s Selloff
Bloomberg reported Wednesday that a wave of forced selling hit crypto markets, with Ethereum (CRYPTO: ETH) below $2,600, XRP (CRYPTO: XRP) below $1.45 and Solana (CRYPTO: SOL) below $118.
Roughly $550 million in leveraged positions got liquidated over 24 hours, according to Coinglass data, most of it from longs.
LVRG Research chief analyst Dan Khus called the move a leverage flush rather than a trend reversal, with crowded bullish bets getting forced out.
That unwind came as renewed Iranian attacks in the Strait of Hormuz pushed Brent crude above $101 a barrel and cooled broader risk appetite, while the 10-year Treasury yield climbed above 5.3%.
Against that backdrop, Apollo Crypto portfolio manager Pratik Kala told Bloomberg losing $83,000 could send Bitcoin back toward $78,000, a level he expects to offer support.
The One Buyer Group Still Underwater
CoinDesk reported Wednesday that only one yearly Bitcoin buyer cohort remains underwater: investors who bought in 2025, with an average cost basis near $88,000.
That threshold now sits right inside Doctor Profit’s short zone, and it could act as resistance if holders sell just to break even on the way back up.
Other buyer groups tell a different story:
- 2026 cohort: bought at an average of $73,500, turned profitable in late August
- 2023 cohort: cost basis near $65,000, has repeatedly held as support through this bear market
- U.S. spot ETF investors: average cost basis near $82,300, only returned to profit this year, making that level a potential support zone if Bitcoin keeps falling
Photo via Shutterstock