Bitcoin Traders Predict Dismal Short-term

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Bitcoin bulls have been quick to tout a “recovery” of the price, which is down around 20% from a $10,000 normal range it had held for several moons.

The price went as low as $7,688 in a recent bear attack, but some traders warn it could get bloodier from here, with a deeper bottom clearly in sight.

Oversold Market Threatens Lower Lows

Market conditions are clearly oversold at this point, which creates a danger of a further reversal in positive trends for BTC soon, say some experts.

Some traders had previously jumped at the chance of calling the drop in Bitcoin price a “dip,” but now things seem to have ironed out and settled at the current levels. As this trader noted, the $8,000 range currently seems comfortable for Bitcoin markets.

Bakkt and CME Bitcoin futures have failed to ignite the passions of the crypto trading community, and a bull run seems out of mind at this point. Instead, in a manner of speaking, people seem to be strategizing and pruning their crypto holdings.

Is Institutionalization Another Form of Risky Centralization?

Then large-scale movements have been taking place, indicating either institutional or other large holders have either lost hope of getting back to $20,000 or have a tax strategy that involves liquidating Bitcoin.

Indeed, sell pressure will be high during the month of October, as some traders use legal wash trading tactics as part of their tax strategy.

For whatever it might be worth, although this isn’t financial advice, the near-term future of Bitcoin trading seems to be an opportunity to acquire BTC at a slight discount. How long this window will last is anyone’s guess.

The last breakout coincided with awful news for Bitfinex and Tether Limited, but the next might be on much more important news, such as the eventual approval of a Bitcoin ETF offering.