An analyst from the biotech consulting group Biotechvalley Insights believes after bitcoin lost 53% from the crypto asset’s all-time high, “the party is clearly over.” The biotech consulting group analyst thinks crypto investors will witness a slow “grind down the slope of hope with a periodic dead cat bounce” and expects prices to drop to $15,000 in the next few weeks.
Analyst Says to Drop Bitcoin and Never Look Back
According to an analyst from Biotechvalley Insights, crypto investors should sell bitcoin and “do not look back.” The analyst said that he had warned investors in a previous article, before bitcoin (BTC) collapsed from a high of $64,895 to $30,066 losing more than 50% in value. The biotech consulting group investor stresses that people “should consider liquidating anything related to bitcoin or short it.”
“[The] recent collapse proves that Bitcoin isn’t a safe haven, store of value, or a hedge against inflation/market correction, but a speculative token that can go down 50% in a week,” the article published on Tuesday notes. “Bitcoin has exhausted its exotic catalysts and is under coordinated regulatory attack by governments around the world. At this point, I don’t think there is anything that can save it from collapsing more,” the analyst’s report adds.
The Biotechvalley Insights’ researcher is not the only individual who believes that “bitcoin is dead.” Two days ago, the gold bug Peter Schiff tweeted about ethereum and bitcoin with distaste.
“Ethereum took out its May 19th low of $1,850. Bitcoin is less than $2K away from taking out it’s May 19th low too. On May 10th the total market capitalization of 10,000 crypto currencies hit a high of $2.485 trillion. It took less than two weeks to fall below $1.3 trillion,” Schiff said.
Biotechvalley Analyst Plans to Short Bitcoin All the Way Down to a $15K Target
The Biotechvalley Insights’ analyst believes that bitcoin’s downward spiral will take longer than most expect. The analyst’s target price is $15,000–$16,000 per BTC, but further says “the million-dollar question at this point would be, are we out of the woods?” The biotech consulting group researcher’s study emphasizes:
I believe Bitcoin has a long way to fall from here. I think it will slowly grind down the slope of hope with a periodic dead cat bounce. As the technology is severely damaged, it is better to be the first one to sell into the bubble before the whole ship sinks.
Bitcoin (BTC) and a myriad of other cryptocurrencies have been facing fierce scrutiny over environmental concerns, and governments are cracking down with excessive regulations. The biotech analyst says those are definitely issues, but cryptocurrencies also “have an extreme level of leverage.”
“Any unexpected price movement downward can lead to rapid liquidations as many investors can’t meet the margin requirement,” the report notes. “Adding to that, it is no secret that bitcoin whales profit from this excessive leverage by manipulating the market and causing unexpected volatility to liquidate retail investors’ positions.”
The analyst’s game plan is to short bitcoin (BTC) “until US$31k and liquidate 30-50% of the position to cover the cost base and continuously short with the house’s money.” The researcher thinks there will be key resistance in this range but after it breaks down resistance around “$19-20k” is expected.