Cryptocurrency analyst and trader Tone Vays is detailing the long-term bull case for Bitcoin (BTC) after the flagship digital asset reached two-year lows triggered by FTX founder and crypto outcast Sam Bankman-Fried.
In a new video, Vays tells his 123,000 YouTube subscribers that even if Bitcoin falls to around $11,000, the largest crypto asset by market cap could still reach a new all-time high of $100,000 next year.
The veteran crypto trader believes that his predicted Bitcoin collapse will likely attract buyers who plan to hold BTC for the long haul.
“We can have a capitulation down to $11,000 and still hit $100,000 next year. Because a lot of Bitcoin is about to go into cold storage because people can buy it on the cheap.”
Bitcoin is trading at $16,886 at time of writing, up by about 8% from the two-year low of around $15,600 hit on Tuesday.
Vays says that if Bitcoin closes this week above the $18,500 support level, it could be an indication that the flagship crypto asset has bottomed out.
“If we close the week above this support level [$18,500], I’m going to be somewhat confident that the low might be in. Right now, it looks very, very promising.”
According to the veteran trader, the funding rates on crypto trading platform BitMEX also indicate that a bottom could be in for Bitcoin based on historical behavior.
“That’s how markets tend to bottom. Let’s look at the last time that BitMEX funding rate was this low. The last time the funding rate was this low was back in May 2021. Let’s see what happened in May 2021. That was right here [$30,000]. Eventually, off of that, we went to a new all-time high [of $69,000].
So I’ll take these odds. I’ll take the odds that the low is in.”
Looking at the trader’s chart, it appears that funding rates are extremely negative, indicating that traders are heavily accumulating short positions. The condition could potentially set up the crypto market for a short squeeze, where traders who borrow units of an asset at a certain price in hopes of selling them for a lower price to pocket the difference are forced to buy assets back as the trade moves against their bias.
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