Bitcoin Price Crash into the $6,000s BTC/USD Would be Met by Strong Buyer Demand
- Many Bitcoin speculators are waiting on the sidelines, wanting an in
- A bitcoin price crash is expected by economist and trader Alex Kruger into $6,000s
Since yesterday, Bitcoin has been making a recovery as it goes back to the $8,000 level. Currently, BTC/USD is trading at $7,967 with 24 hours loss of 0.08 percent.
At the end of last month, Bitcoin dropped down from the highs of $9,100. But then again in June that BTC started at around $8,500, we went below $7,400, only to trade around $7,800 level. Now, we are maintaining the $8,000 level since hitting it yesterday.
Recently, we reported how cryptoanalyst, Willy Woo shared that the recent rally in May that took us to 12 months high was exchange driven pump. He explained how with on-chain investor volume being in the normal range meant the surge was from short term trade activity on the exchanges.
“This is a quant fund driven short squeeze devoid of any true investor volume,”
is what Woo said this pump was.
He is now waiting for this to blow off, have a “proper retrace” and only then the real investor flows will come in to drive the
“true organic bull market.”
A Bullish Scenario Expected here
Economist and trader, Alex Kruger also shares his views on the Woo’s interpretation which he says is in line with his analysis that Bitcoin’s run up from the $6,000 level was driven by only a handful of informed parties. He also said, this surge wasn’t driven by Chinese demand, trade wars, and widespread demand as has been speculated, though Kruger says the former
“would have only ramped up later in the move.”
According to him, these parties engineered a bull market with
“front-running expected Fidelity/Ameritrade flows.”
This Kruger further explains can be interpreted both in a bearish and bullish way. It could turn out bearish as the same parties involved in this may dump their Bitcoin and in result reverse the whole move.
As for it to turn out to be bullish, he explains how this move happens without the participation of retail and the fact that retail represents 93 percent of the market, once retail follows, the market will “explode higher.” Moreover, he recalls that Bitcoin trades are “almost entirely” dependent on the sentiments or as he further puts it the
“whims of the few”.
According to Kruger, the bullish scenario is more probable as now speculators that have been waiting on the sidelines want in. A crash just like many analysts is expected by him as well which he says will have us in the $6,000s. This crash he says would be met by strong demand.
Once demand in huge volume enters the market, we might get straight to $10,000 from this level.