Tone Vays, a cryptocurrency analyst, is articulating the long-term bull case for Bitcoin after the market's leading cryptocurrency hit two-year lows owing to the collapse of FTX and the spectacular fall of Sam Bankman-Fried (BTC).
According to what Vays has stated, even if the price of Bitcoin falls to around $11,000, it may still reach a new all-time high of $100,000 in the following year. The trader believes that if the price falls as anticipated, there will be an increase in the number of buyers who intend to store Bitcoin for an extended period of time.
We can accept a concession of $11,000 and still reach our goal of $100,000 in the next year. Because many people may now purchase Bitcoin at a low price, a significant amount of the cryptocurrency is about to be placed in cold storage.
According to Vays, if Bitcoin manages to post a weekly close that is higher than the support level of $18,500, it may indicate that the most prominent digital asset has reached its lowest point.
According to the experienced trader, financing rates on the cryptocurrency trading site BitMEX also signal that, based on the way Bitcoin has behaved in the past, a bottom may soon be in sight for the cryptocurrency.
"The financing rate hasn't been this low since May of 2021, which was the last time we saw it at this level. Let's take a look at what took place in May of 2021. This right here [$30,000] was the amount in question. Because of that, we eventually reached a new peak [of $69,000], which was our highest point ever. Therefore, I'll take these chances. I'm willing to put my money on the low being in."
It is possible to deduce from the chart of the trader that short bets are currently being established since financing rates are extremely bearish.
This could potentially set the stage for a short squeeze on the cryptocurrency market. A short squeeze is a situation in which investors who borrow units of an asset at one price with the intention of selling them for a lower price and pocketing the difference are forced to buy the assets back when the trade swings against their bias.
At the time of this writing, the price of Bitcoin has increased to $16,850, which is a change of less than one percent in the past twenty-four hours.
