After the market’s leading cryptocurrency hit two-year lows due to FTX collapse and Sam Bankman-Fried dramatic fall, cryptocurrency analyst Tone Vays is outlining the long-term bull case for Bitcoin (BTC).
Vays has said that even if bitcoin drops to around $11,000, it could still hit a new all-time high of $100,000 next year. The trader thinks that buyers who intend to store bitcoin for the long term will be prepared for it if it crashes as expected.
“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.”
According to Vays, if bitcoin closes this week above the $18,500 support, it could mean that the leading crypto asset has bottomed out.
The veteran trader said that funding rates on the cryptocurrency trading platform BitMEX also suggest that, based on historical behavior, a bottom may be in for Bitcoin.
“Last time the funding rate was this low in May 2021. Let us see what happened in May 2021. he was here [$30,000], Eventually, out 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 are in the following.
From the trader’s chart, it can be seen that funding rates are incredibly bearish, which suggests that traders are now building up short positions.
This could set the cryptocurrency market up for a short squeeze, in which traders borrow units of an asset at a price with the intention of selling them for less and pocketing the difference when trading swings against them. So they are forced to buy back the property. Partiality.
At the time of writing, BTC is trading at $16,850 and is up by less than one percent in the last 24 hours.
