Bitcoin and Stocks Face Pressure After Fed Repo Shift

• Bitcoin broke above the “Silver Line” after five rejections, signaling short-term bullish momentum with upside targets near $97k–$107k.

• Doctor Profit tied the breakout to liquidity stress, citing a record $106B Fed repo injection after September 2025 rule changes.

• Despite the breakout, he remains bearish long term, targeting sub-$70k Bitcoin and pointing to stress across banks and equities.

Bitcoin broke above a key short-term resistance on Sunday. The move followed weeks of repeated rejections and came after Bitcoin reached $80,000 earlier this month. According to Doctor Profit, the breakout occurred as markets absorbed growing liquidity stress and shifting Federal Reserve repo rules.

Bitcoin Breakout Sets Near-Term Price Focus

Doctor Profit reported that Bitcoin moved above the “Silver Line” for the first time in a month. Notably, this level rejected price advances five times previously. However, a clean retest followed, which he described as short-term bullish confirmation.

Earlier, he stated Bitcoin could reach $97,000 to $107,000 before resuming downside pressure. He also disclosed spot purchases near $85,000, with planned sales inside that upper range. Meanwhile, he outlined staggered short orders between $97,000 and $107,000, using divided position sizing.

In addition, Doctor Profit said he kept higher shorts open between $115,000 and $125,000. He explained that these positions prepare for extended upside volatility. However, he reiterated a broader bearish outlook, with targets below $70,000 in coming months.

Fed Repo Lending Raises Liquidity Concerns

Alongside price action, Doctor Profit pointed to a major liquidity event on New Year’s Day. According to him, the Federal Reserve lent $106 billion through overnight repo operations. He highlighted that this marked the largest single-day repo injection on record.

However, the analyst linked this move to a rule change introduced in September 2025. Previously, the standing repo facility capped daily lending at $500 billion system-wide. Now, each bank can access up to $240 billion, he noted.

Doctor Profit stated the change prepares for multiple institutions seeking liquidity simultaneously. He added that markets showed little reaction, despite the scale of lending.

Broader Market Stress and Positioning

Doctor Profit also referenced insider selling and pressure across equity markets. He linked these conditions to rising stress within the banking system. Additionally, he cited silver market liquidations affecting banks holding short positions.

According to him, similar conditions appeared before past market downturns. As a result, he stated he remains bearish on stocks and Bitcoin. Meanwhile, he said he remains focused on gold and silver positioning, based on current liquidity dynamics.