Sunday, July 12, 2020

Crypto Trader: ‘Bitcoin Will Crash to $2,000, Followed by HODLers Screams’

When Bitcoin was trading around the $3,000 and $4,000 price levels, many were predicting its price in the long run and when the cryptocurrency winter will be over. However, April ushered in a new kind of sentiment from two groups. The first group is those that believe the recent surge in price marks the end of the bear market. The other is a group that believes investors are in for another round of pain.

Cryptocurrency Hedge Fund Trader is Bearish About Bitcoin

In this classification, Jonathan @jcho710, a cryptocurrency hedge fund trader will fall into the second. The trader recently stated on Twitter that Bitcoin will dump to $2,000 and even as low as $1,900. When that happens, it will be followed by investors’ screams and the virtual asset will possibly have fewer adamant believers.

According to the Korea-based trader, the current surge in price is “bulls**t” and while a spike may have occurred, it is non-sustainable. In a bid to give people an understanding of where he is coming from, the trader gave some technical analysis of why Bitcoin hodlers are about to be destroyed.

Bitcoin’s Decline From $6,000 to $3,000 Will be an Extreme Loss

First, Jonathan outlined that if Bitcoin declines from $6000 (if it does get there) to $3,000, that would mean a 50 percent loss in price. If that happens, it will be an imminent and extreme loss on the part of investors. Moreover, that will be enough to crack the religious devotion many people have to the virtual asset.

Jonathan also said:

From low-mid $5ks to $2k is 65% $BTC. Devastation. But total gift to short. This is basically abt to be amazing & enable more rational discussion abt crypto/Blockchain. This will be ~shorting from $15k+ to $6k again. Halving & 200DMA/WMA, you are about to get destroyed.

Richard Heart Believes Losses Can be Incurred by Investing Now

While Jonathan may have his opinion, it correlates with that of a number of people who believe that the recent price surge is a crash just waiting to happen. For instance, Richard Heart, a Bitcoin billionaire recently said if you buy into the market at this point in time, you’re likely to get rekt. He added that he expects another dumped in price before Bitcoin finally surges.

Bloomberg’s analysts on April 10 also said Bitcoin bulls are grasping at straws. The media further stated that its Galaxy Crypto Index shows that Bitcoin is extremely overbought. Its transactions and volume on exchanges have not also increased significantly. That being the case, a combination of these can trigger a crash in price sooner than later.

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