Bitcoin’s price action of late got the community rather bearish. A lot of popular analysts are suggesting that the price might plunge down to $6,000. As we’ve seen plenty of times in the past, however, Bitcoin often does the exact opposite so it’s quite interesting to see where the price will take from here.
Bitcoin’s Price Recent Action And Bearish Sentiment
Bitcoin’s price is moving in a range for the past few days. This comes after the fake breakout we saw back on October 11th when the price shot up to about $8,800 only to plunge down back to $8,300 in a devastating red candle.
Since then, we can see that it’s moving in a fairly tight range between $8,100 and $8,300, seemingly unable to make a move.
However, the price actions of late have caused a lot of prominent analysts and people from the community to turn rather bearish. A lot of people are expecting Bitcoin to return to the levels around $6,000, which turned out as major support back in 2018 before breaking down.
A prominent trader, regarded as the top trader on BitMEX, tweeted yesterday that he is “patiently waiting” for the price to drop to $6,000 where he intends to stack long-term holdings.
Patiently waiting for $6k $BTC levels where I will add to long-term holdings.
Good luck homies.
— Angelo฿TC (@AngeloBTC) October 15, 2019
Another one to note a move of the kind was Timothy Peterson, an investor at Cane Island Alternative Advisors. He bases his prediction on the gap in the price between spot-traded Bitcoin and GBTC.
— Timothy Peterson (@nsquaredcrypto) October 11, 2019
What is more, a lot of people also quote the so-called Wyckoff Logic which supposedly suggests that Bitcoin may soon return to $6,000. This is a way of looking at markets brought forward by historical investor Richard Wyckoff. The model suggests that Bitcoin is amid a bearish phase and it may begin a 20% drop down to $6,000 or even lower.
Here is another Wyckoff Logic pic.twitter.com/WszntfYScl
— Moe (@Moe_mentum_) October 12, 2019
So, What’s The Catch?
There’s obviously a lot of people thinking that Bitcoin will head south from here, retesting the levels of $6,000. However, history has shown us more than once that when a lot of people from the community expect one thing, Bitcoin goes and does the exact opposite.
Let’s take 2018 for example. A lot of people back then believed that $6,000 is major support that won’t be broken. Unfortunately back in November 2018, the support was shattered and Bitcoin went all the way down to $3,100.
In other words, it remains very interesting to see where the price will take from here. It’s perhaps also worth noting that the popular Bitcoin prophet, who hasn’t been wrong so far, has predicted that Bitcoin will trade at $16,000 in October. With half of the month already gone, Bitcoin would have to essentially double up in order to meet his targets.