Bitcoin has been on a winning streak for most of October and the many gains since then pushed the price above $35,000 before correcting back down. Even now, Bitcoin continues to show strength, but not everyone is convinced this winning streak will continue. One of these is a crypto analyst who insists that the price of Bitcoin will head back down with a huge price drop to crown the rally.
Seeing Bitcoin at $8,000
The crypto analyst who goes by holeyprofit first posted his analysis of Bitcoin on TradingView on October 22, right at the start of the uptrend. At that time, the Bitcoin price was still hovering around $30,000, and the analyst stated that the asset price could not rise above $31,000.
According to the analyst, the recovery would make investors want to enter the market as they believe the price of BTC would continue to rise. However, this would be a bull trap and a consistent downtrend would quickly follow.
After Bitcoin’s breakout just a few days later, the analyst updated the forecast but continued to insist that the price would return back down. An Oct. 25 update from the analyst read: “If this is indeed going to be a reversal, the recent action would imply a very strong reversal.”
Source: Tradingview.com
This continued bearish expectation from the analyst led to short positions that appeared to increase from $34,000 to $35,000. “We have gone a bit off the top and so far we are dealing with an early structural failure of the uptrend,” the message said. “It’s entirely possible that we fall here and it’s just a pullback (very likely this will return even on a bull move, which is why the 34/35K short seems like a no-brainer to try again .”
Doubling down on the bearish BTC stance
The crypto analyst’s analysis had drawn a lot of criticism from Bitcoin bulls, but holeyprofit remains unmoved in their resolution. Even after the BTC price continued to rise, the analyst claims that the crypto is heading towards the $8,000 level.
The most recent version of the post indicates that the crypto is actually at the point where they expect the downtrend to begin. This region around $34,700 failed to hold on Sunday and has since fallen back to the $34,200 level.
Holeyprofit addresses comments that they were trading against the trend, saying they were essentially betting on the trend continuing. “This is where my models suggest is the best time to exit bull trades or at least make trail stops to protect another bear break,” the analyst said.
BTC rests above $34,500 | Source: BTCUSD on Tradingview.com
Featured image from iStock, chart from Tradingview.com