Crypto trader and blockroots co-founder Josh Rager believes a bitcoin crash to $ 5,000 is very unlikely. Although he does not rule out a decline to this level, he believes that “there would be bounces in between”.
Bitfinex Long-Jump is nothing to worry about
Rager posted his comment in response to a chart showing a massive increase in open long positions on the Bitfinex exchange. They have erupted in the last three weeks and increased by 64% – compared to more natural ebb and flow in the past three months.
Given Bitfinex’s maximum leverage, Rager speculated that Bitcoin prices would have to fall in the mid to low $ 5,000 region to liquidate these long positions.
A dive directly at this level is highly unlikely at the moment, since such a case would lead to a bounce in the meantime. It is better to observe the funding rate and the open interest on BitMEX as an indicator of the mood in the Bitcoin market.
Difficult times for Bitcoin before $ 100K
The experienced trader Tone Vays also predicts a potentially rocky time for Bitcoin. Based on falling weekly highs and weekly lows, Vays believes it is “time to pray” if support at $ 7,100 and $ 6,900 does not hold.
Veteran trader Peter Brandt also believes the short-term outlook for Bitcoin could be bearish. Brandt said Bitcoin could bottom out at $ 5,324 in June 2020 – if the current price correction continues.
Brandt also set up a scenario in which Bitcoin immediately becomes bullish again, with new all-time highs already being reached next year.
In both cases, Brandt’s long-term outlook gives cause for optimism. He believes Bitcoin will remain bullish in the next few years, eventually reaching $ 100,000.