A widely followed market commentator has turned fully bearish on Bitcoin for the second quarter after arguing that the rebound thesis has failed and that downside liquidity now matters more than near-term upside. The shift matters because his earlier framework called for a short-term pump before a larger decline, but he is now positioning for weakness across both horizons.
Bitcoin was trading around $66,790 on April 2, 2026, down 2.58% over 24 hours, as the bearish turn gained traction across crypto markets.
In the visible opening of an April 1, 2026 X post, Mr. Wall Street wrote, “Few weeks ago I told you Bitcoin was bullish short term and bearish mid term,” adding that market makers would first pump price to create downside liquidity before a larger move lower.
#Bitcoin: Few weeks ago I told you Bitcoin was bullish short term and bearish mid term. I told you that despite the mid term bearishness, market makers would pump the market short term to create downside liquidity, and only after that liquidity is built would the market move… pic.twitter.com/22KIJI20da
— Mr. Wall Street (@mrofwallstreet) April 1, 2026
Why the bearish turn matters now
CryptoPotato reported that the analyst has now flipped bearish on both the short-term and mid-term timeframes, after previously looking for a recovery rally into late Q1 or early Q2.
The same CryptoPotato report said he closed short-term longs at $68,000 and opened or staged shorts between $77,000 and $83,000, a reversal that stands out with Bitcoin still carrying a market cap above $1.34 trillion and roughly $43.8 billion in 24-hour volume.
What a brutal quarter could mean for BTC
The reported downside target is $40,000 to $45,000, with the same report saying the analyst sees liquidity building below price and around the 2024 summer range. The more dramatic “full of blood” wording should be treated cautiously, because that exact phrase was only cited in secondary coverage and could not be verified from the partially readable primary X capture.
That risk-off reading fits a market already leaning defensive after Coinlive tracked Bitcoin falling to $66K as Trump signaled Iran escalation and covered how Drift Protocol said a $270M hack was no April Fools’ joke. It also arrives against a noisy macro backdrop that includes Coinlive’s report on Trump saying he built the “strongest economy in history” with no inflation, even as traders keep reacting more to live price action than political messaging.
Signals traders are watching next
If the bearish thesis is starting to play out, the first signal is whether Bitcoin keeps rejecting rebounds below $68,000, the level where CryptoPotato said the analyst exited his short-term longs. A failure to reclaim that area would keep attention on the lower-liquidity zone he described in the April 1 post.
For now, the practical read is narrower than the headline language: one verified X post, one detailed secondary report, and a live market still pricing Bitcoin near $66,790 rather than anywhere close to the reported $40,000 to $45,000 downside band. The next few sessions should show whether selling pressure deepens or whether the bearish reset has to be revised again.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
