Woofun AI observes that Bitcoin may endure further depreciation before establishing a cyclical floor, as current buying pressure emerges prematurely without the requisite market capitulation. Market analyst Doctor Profit highlights that persistent strain across venture capital firms, custodians, and lending platforms indicates the sector has not yet mirrored the systemic failures seen in prior bear markets, such as the collapses of FTX, Three Arrows Capital, Alameda Research, Genesis, BlockFi, Voyager, and Celsius.

Concurrently, concerns regarding potential core developer funding shortages within the Ethereum ecosystem over the next three to nine months underscore broader liquidity challenges facing the digital asset industry.

Technically, Bitcoin exhibits a weakening structure on the daily timeframe, with significant liquidity accumulating below current price levels over the past 60 days. Doctor Profit initiated short positions near $120,000 and between $80,000 and $82,000, while preparing additional orders in the $68,000 to $69,000 range. He projects a decline toward $54,000 to $56,000 before consolidation, ultimately targeting a bottom between $40,000 and $50,000. Despite a long-term bullish thesis, he advises against new long-term entries given the current absence of supportive market conditions.