Bitcoin climbed from $60,000 to $87,000 as late buyers entered the market, while analyst Doctor Profit opened a short position near $86,200 targeting $79,000, using the weekly 50-day moving average (MA50) as the key level to confirm whether support holds. A second analyst, Darkfost, mapped a potential wave-two correction toward $74,500, where the 50-day and 200-day exponential moving averages (EMAs) converge.

Both analysts focused on technical levels after Bitcoin's recent advance and shifting expectations around an October bottom during the latest move. Long- and medium-term moving averages are among the most widely watched trend indicators in technical analysis, and traders commonly use them to frame whether market conditions favor advances or corrections.

Doctor Profit Opens Short Near $86,200

Doctor Profit said on X that many traders had expected Bitcoin to bottom in October. However, the move from $60,000 to $87,000 changed sentiment, with more late buyers entering the market. He opened a short at $86,200 and set $79,000 as his first target. A short position gains value when the underlying asset declines, so the trade is structured around a pullback rather than a continued advance.

The trade centers on Bitcoin's weekly 50-day moving average (MA50). According to Doctor Profit, reclaiming the weekly MA50 produced a bull-market signal. He now wants Bitcoin to retest that level and confirm it as support — a step many trading frameworks treat as meaningful, since a newly reclaimed level that holds on a retest is considered stronger confirmation than one that is never revisited. If the MA50 holds, he plans to take profits on the short and buy more Bitcoin and Ethereum. If the level fails, he may keep the position open and target lower prices.

Doctor Profit also said his spot positions, bought around $60,000, remain open. He has not sold them, describing the short as a correction trade. The combination keeps his longer-term exposure in place while he trades the pullback separately.

Darkfost Watches Elliott Wave Setup

In a separate X post, Darkfost said Bitcoin had approached a Fibonacci extension target linked to the Elliott wave pattern underway. Elliott wave analysis divides market moves into impulse and correction phases, and Fibonacci ratios are commonly used to estimate where each phase may complete. His fractal analysis remains valid for a wave five, though he noted that Bitcoin could still print an overshoot.

He also said the relative strength index (RSI) could develop bearish divergence — a pattern in which price makes a higher high while the oscillator makes a lower high, which traders read as fading momentum. The three-hour RSI has entered overheated territory, according to Darkfost, while the daily RSI is making a lower high as Bitcoin's price makes a higher high.

If the current move confirms as wave one, Darkfost expects a wave two correction, a phase that often reaches a 0.382 retracement.

Analysts Mark Lower Levels Below Bitcoin

That retracement would place Bitcoin around $74,500, according to Darkfost, who identified the level as an area where the 50-day and 200-day EMAs converge. Confluence zones where multiple moving averages meet are commonly used as reference levels because they mark prices where different trend timeframes align. However, a wave five overshoot could push that level higher.

Darkfost said his setup should not be treated as bearish. Within Elliott wave framing, a wave two is a corrective phase inside a larger advance, which is consistent with that reading. The checkpoints both analysts' plans hinge on are the same: whether the weekly MA50 holds on a retest, and whether Bitcoin confirms the move as wave one or prints an overshoot instead.

Source: Cryptofrontnews