Bitcoin’s recent price action has got the community feeling rather bearish. A lot of popular analysts are suggesting that the price might plunge to $6,000. As we’ve seen plenty of times in the past, however, Bitcoin often does the exact opposite of what people expect, so it will be quite interesting to see where the price goes from here.
Bitcoin’s Recent Price Action and Bearish Sentiment
Bitcoin’s price has been 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 back to $8,300 in a devastating red candle.
Since then, the price has been moving in a fairly tight range between $8,100 and $8,300, seemingly unable to make a move.
However, the price action of late has caused a lot of prominent analysts and people from the community to become rather bearish. A lot of people are expecting Bitcoin to return to the $6,000 level, which served as support for a time back in 2018.
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:
Patiently waiting for $6k $BTC levels where I will add to long-term holdings.
Good luck homies.
— Angelo฿TC (@AngeloBTC) October 15, 2019
Predicting a similar move was Timothy Peterson, an investor at Cane Island Alternative Advisors. He based his prediction on the price gap between spot-traded Bitcoin and GBTC.
— Timothy Peterson (@nsquaredcrypto) October 11, 2019
A lot of people have also quoted so-called Wyckoff Logic, which supposedly suggests that Bitcoin may soon return to $6,000. This is a way of looking at markets introduced by the early twentieth-century investor Richard Wyckoff. The model suggests that Bitcoin is in a bearish phase and that it may see a 20% drop 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 Caveat?
There’s obviously a lot of people thinking that Bitcoin will head south from here and retest $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 as an example. A lot of people back then believed that $6,000 was major support that wouldn’t be broken. Unfortunately, back in November 2018, the support was shattered and Bitcoin’s price went all the way down to $3,100.
It’s perhaps also worth noting that the popular Bitcoin prophet who has yet to be wrong predicted that Bitcoin would trade at $16,000 in October. With half of the month already gone, Bitcoin’s price will have to essentially double in order to meet his target.