Sometime back, the price of Bitcoin sat somewhere around $3,150, vacillating around that figure. However, within a week, the price successfully shot past $4,000 causing some excitement. Shortly after the $4,000 mark was crossed, people started to have conversations around what the lowest price for Bitcoin really was. Morgan Creek Digital’s Anthony Pompliano, who is an ex-employee of Facebook and Snapchat, had posited that it’s possible the bottom would be somewhere around $2,000.
Many people shared Pompliano’s views maybe not on the specific price but the general possibility of new lows for BTC. However, because of the jump in price that occurred some days ago, a lot of people are starting to double back on what the bottom price is. One of such people is Josh Rager.
Rager who is currently with Level, a crypto exchange, has expressed what he thinks about Bitcoin’s bottom and why he thinks so. Firstly, he thinks that many retail investors find $3,000 to be a comfortable price for them as they did have many buy orders from that price and below.
Secondly, Rager expressed that big whales and most major financial players in the sector also think that their investments are safer around that price. Due to this, Rager concluded that Bitcoin could not sink lower. His tweet explaining the first reason said:
As I’ve thought about the Bitcoin $3,100 bottom, it could make sense for two reasons.
1. Most retail investors were waiting with their bags open under $3k with orders stacked between $1800 to $3k
But were front run by smart money who knew where the majority were waiting
Could There Be An Even Lower Bottom?
The same Rager who thinks $3,100 might be the lowest bottom may have expressed a different view, suggesting that it could drop even lower. In the two year period starting from 2014, the price fell so low that the general conclusion by most people was that BTC had completely bottomed out before going high and dropping again. Based on this trend, Rager suggests that a possible scenario for Bitcoin would be for it to drop terribly low after the recent price surge.
His tweet said:
“$BTC: Comparing 2019 to 2015 Bottom
Would be interesting if Bitcoin pushes for a “higher-high” in the coming weeks.
Only for it to repeat 2015 with a slow-sideways-decline over the following weeks before an ending capitulation to fill buy-orders.
Just one potential scenario”
Another person who may have a similar view to Rager’s is Murad Mahmudov, a partner at Adaptive Capital. Mahmudov has expressed that because of previous trends and also how long the situation of the 2017 market lasted, Bitcoin could hit a price as low as $1,700.