Predicting the future Bitcoin price is always extremely difficult. Market volatility can disrupt any prediction with relative ease. Tone Vays, a notorious figure in the cryptocurrency world, is making his first BTC trade of the year. As expected, he currently favors shorting Bitcoin given the current market conditions.
Shorting Bitcoin With Tone Vays
Trading cryptocurrencies can result in either losses or profits on any given day. In the case of Bitcoin, it has become increasingly difficult to predict future momentum. Tone Vays, a renowned former Wall Street trader, has little faith in BTC right now. In fact, he recently opened a leveraged short position to further indicate how things may evolve over the next six months.
A leveraged market position is quite interesting. For Tone Vays, his prediction can make him a lot of money or cause some financial disruption. His position is set to get liquidated if Bitcoin reaches $7,650 before March 2019. Based on current circumstances, that seems very unlikely. Most speculators hope for some positive momentum prior to 2018 coming to a close.
https://twitter.com/ToneVays/status/1051131445517975552
If liquidated, Tone Vays will effectively be forced to pay up the value of five Bitcoin. That is the danger of using leveraged trading first and foremost. However, Tone is convinced he can take profit if Bitcoin hits $5,000 before on during March 2019. Bitcoin has shown the world its price momentum can swing either way when people least expect it. Earlier today the value of 1 BTC surpassed $6,700 again.
A Grim Outlook or Cautious Optimism?
Based on the momentum earlier today, things may not look that bleak for Bitcoin. This sudden uptrend has caught a lot of people, including Tone Vays, by surprise. Numerous uptrends have tried to form throughout 2018 without much long-term success. It is unclear if this new bull run will be different or offer more of the same.
The sentiment shared by Tone Vays does not warrant a positive outlook. Even so, this year’s pullback was entirely to be expected. The market saw wild and impossible momentum up until January 2018. From that point forward, things have slowly returned to normal. Despite the odds, Bitcoin still holds its own above the $6,000 mark with relative ease.
Traders can’t overlook the Bitcoin Dominance Index. This percentage confirms how BTC dominates the cryptocurrency industry as a whole. For most of 2018, that figure has been well above the 45% mark. Today, it sits at 54.3%, further confirming Bitcoin remains king at all times. It is also the main gateway for altcoin speculators. A dip to $5,000 seems unlikely, albeit not impossible.
Do you think Tone Vays made the right call in shorting Bitcoin? Let us know in the comments below.
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