Bitcoin Price Drops To $7,400: Is October High A Fluke?

Bitcoin (BTC) was meandering at $8,000 from late September until the last few days of October and even grazed under $7,300 before it spiked to $10,500. Currently, BTC is back at those levels, erasing much of the gains it had the prior month.

The most popular crypto slipped back to $7,000 territory following the reports of Binance's Shanghai office being subjected to a raid and a subsequent shutdown, which the largest crypto exchange has denied. BTC, in its continued slide, is testing the $7,500 support level as of press time, which had prompted some traders to say that the October move was merely a fluke.

The likely cause of Bitcoin's rally in October is Chinese President Xi Jin Ping's positive comments about blockchain, which had spawned some investor exuberance for the otherwise depressed prices. The upward trajectory of Bitcoin's price even rejected the extremely bearish technical signal that it crossed under just a day before.

However, bulls couldn't sustain the momentum as BTC reverted to a prevailing downtrend that could be traced back to the peak on June 26.

Even More Bearish Predictions

Several analysts have expressed their bearish outlook for the king of cryptos. One such bear is CryptoDude, who broadcasted his prediction of a Bitcoin price falling to $900 by 2021.

On Friday, he came forward with a fresh update on his analysis, saying: "$BTC I'm short term bullish until a move up to around 7800. Reaction to that level will give us a better idea on whether we keep moving down or if there's a possibility of recovery. Rejection of that level or a break of 7500 means more blood in the upcoming future."

Although a little less grave at $4,500, Tony Vays and Willy Woo, who had a Youtube live discussion on Wednesday, echoed the same bearishness for BTC. Both of them predict that before the halving, Bitcoin is going to have to endure downward pressure, but will quickly shoot back up to $10,000 in a matter of weeks.

DonAlt offered a more neutral forecast, saying, "People talking about $3000 right now are being more unreasonable than people talking about new highs. A run from $200 -> $20k is going to take some time to digest."

"$3k was an overreaction to the downside. $14k was an overreaction to the upside. We're now finding middle ground," DonAlt added.