Veteran trader Gareth Soloway says bitcoin to potentially go under $12,000

Chief market strategist Soloway has been calling the bitcoin price correctly since its $65,000 top. He called for the price to hit the $20,000 last bull market top support, and now he is expecting bitcoin to break this support and head down to the $12,000 region and lower.

Soloway’s $20k call has made him a bit of an internet celebrity. In a Kitco interview he said he is not a perma-bear though, and just takes his direction from the charts. When he made his famous call, bitcoin was at $65k, and he said that things were quite uncomfortable for him at that time.

“I still remember I was the loneliest man in the room. No one really wanted to talk to me too much there. I kind of had to stand in the corner because I was the only one that was bearish. But again, price is always king. Charts are always truth, versus emotion.”

He said that his current reading of the chart is that the market has wicked the price down past $19k in order to take out the stops of those who were going to try and take advantage of a bounce. 

He does believe though that there are signs that bitcoin can make the expected bounce now. He thinks that the recapture of the $20k support, plus other confluences, could potentially signal that a bottom is in for now.

His next target is around $25k to $30k, which he thinks could take 3 to 6 weeks, as investors start thinking that the bitcoin bottom is in, and that the new bull market is beginning.

However, the trader believes that there will be a lot more downside to come, and his ultimate target is around $12,000.

Soloway declares that even though he is bearish for now, he has actually started to build a long-term hodl position. He says he has bought a small position at around $19k, and that he will add increments to it as bitcoin falls further towards 12k.

“I remain a long-term bull on bitcoin. In fact, when we broke $20,000, at $19k I announced I started my beginning hodl position, and so, ever since we were at $65k, and even though I was bearish, I was always saying listen, long-term there is a huge place in the economy, in the world, for bitcoin, and I think we’ll get there, and we’ll get to $100k, $500k, maybe $1 million dollars. It’s just you have to flush out all the weak nonsense.”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.