Prominent crypto trader Doctor Profit believes there are only two likely scenarios ahead for the price of bitcoin, both culminating in a drop to around $34,000 per bitcoin. The comments come as large bitcoin holders appear to be taking profits from the recent rally.
“For now there are only two options for #BTC. Both with one and the same goal,” said Doctor Profit in a recent tweet. He explains that since November 9, bitcoin has been declining after a brief spike up from $35,000 to nearly $38,000.
Doctor Profit’s analysis suggests bitcoin will either drop straight to $34,000 from current levels or pump again to around $38,000-38,500 before declining to $34,000. Either way, he is keeping his short positions open and adding to them on any bounce back up, targeting an ultimate move down to $34,000.
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Whale Watching
According to crypto market analyst Ali, the bitcoin whales appear to agree with Doctor Profit’s bearish outlook.
“On November 3, #Bitcoin whales started booking profits as the $BTC price rose from $35,000 to nearly $38,000. More than 15 wallets with over 1,000 #BTC sold or redistributed their holdings,” tweeted Ali on November 10.
He followed up with further data showing these major bitcoin holders dumped an estimated $2.22 billion worth over the past week, selling or moving around 60,000 BTC.
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The Path Ahead
With whales cashing out and analysts calling for a drop to $34,000, the market may be in for more downside ahead. Doctor Profit and the big bitcoin holders seem to believe the pump to $38,000 was a dead cat bounce rather than a trend reversal. Their large-scale selling suggests caution may be warranted for those looking to buy the recent dip.
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