“The crypto market is at a crossroads as a prominent crypto analyst foresees a potential 75% downturn for Bitcoin, raising concerns about the need to reassess investment strategies and consider the possibility of exiting the volatile market.”
Bitcoin Price Analyst Predicts Massive Drop to $8,000
Bitcoin has been experiencing a strong rally throughout October, with multiple surges pushing the price above $35,000. However, not everyone is convinced that this winning streak will continue. A crypto analyst, known as holeyprofit, has maintained that the price of Bitcoin will plummet with a significant drop to $8,000.
Holeyprofit first posted their analysis on TradingView on October 22, when Bitcoin was hovering around $30,000. The analyst predicted that the price would not be able to surpass $31,000. According to holeyprofit, this would create a bull trap, leading to a consistent downward trend.
Despite the breakout in Bitcoin’s price a few days later, the analyst updated their forecast but remained bearish. They stated, “If this indeed going to be a reversal, the recent action would imply a very strong one.”
The sustained bearish expectation from holeyprofit led to an increase in short positions, rising from $34,000 to $35,000. The analyst stated, “Very possible we drop here, and it’s just a pullback.”
Despite receiving backlash from Bitcoin bulls, holeyprofit remains steadfast in their prediction. They believe that Bitcoin will eventually reach the $8,000 level. The most recent analysis suggests that the cryptocurrency is now at the point where the downtrend is expected to begin. The price failed to hold around $34,700 and has since broken back down to the $34,200 level.
Holeyprofit addresses comments that they were trading against the trend, clarifying that they were actually betting on the trend to hold. They advise traders to exit bull trades or trail stops to protect against a bear break.
While the analyst’s bearish stance may be met with skepticism, their analysis provides an alternative perspective on Bitcoin’s future price movements. As the crypto market continues to evolve, it is important to consider various viewpoints and predictions.
Disclaimer: The opinions expressed in this article are solely those of the author and do not reflect the views of the company. This information should not be interpreted as investment advice and is for informational purposes only.