Bitcoin's Low Point Hasn't Been Reached According to Leading Dealer
Bitcoin May Dip Below $113,000, Says Justin Spittler
Justin Spittler, the chief trader at RiskHedge, has predicted that Bitcoin has not yet bottomed out and could retest the $113,000 level in the near future. In an interview, Spittler stated that Bitcoin bulls should prepare for "a bit more pain" in the short term but does not expect a deep retracement given the recent breakout.
As of July 23, Bitcoin is trading at $115,692, having slipped to an intraday low of $114,518 on the same day. This correction occurred less than two weeks after Bitcoin hit its all-time high of $123,236 on July 14.
However, Spittler's outlook does not suggest a deep retracement for Bitcoin. He believes that the retest of $113,000 might occur, with some downside overshoot possible, indicating short-term weakness but not a severe drop. The recent breakout and the positive performance of alternative cryptocurrencies suggest that the market still has some risk appetite.
One factor that could contribute to potential high volatility in the near future is Bitcoin's open interest in derivatives, which has reached a new high of $44.5 billion. This indicates a significant amount of money is at stake, which could lead to increased market movements.
Chris Burniske, a partner at Placeholder, agrees with this assessment, stating that there is "not much fear" in the market based on altcoin performance. The ETH/BTC pair, for instance, has surpassed the $3,700 level, indicating a strong demand for Ethereum relative to Bitcoin.
In conclusion, Spittler's forecast signals a near-term short-term dip around $113,000 or slightly lower, followed by stabilization. Despite the short-term correction, the long-term bullish momentum remains intact after the recent breakout. Bitcoin investors are advised to stay vigilant and prepare for potential short-term volatility.
- Justin Spittler, a chief trader at RiskHedge, expects Bitcoin to retest the $113,000 level in the near future, suggesting a short-term dip.
- Alternative cryptocurrencies, such as Ethereum, are performing well, with the ETH/BTC pair surpassing the $3,700 level, indicating a strong demand for Ethereum relative to Bitcoin.
- Chris Burniske, a partner at Placeholder, shares Spittler's assessment, noting a lack of fear in the market based on altcoin performance.
- The high open interest in Bitcoin derivatives, currently at $44.5 billion, could contribute to potential high volatility in the near future.
