A popular crypto analyst says deep-pocketed investors are doubling down on long positions amid the recent market-wide price collapse.
The pseudonymous trader Light tells his 157,800 Twitter followers that the Bitcoin (BTC) risk-reward ratio looks attractive now that BTC is trading very close to $30,000.
“If you’ve gotten this far, you need to be expressing some long position. It either bottoms here or at $30,000, but in three months it won’t matter. ‘If you don’t believe me or don’t get it, I don’t have time to try to convince you, sorry.’”
The analyst also says that experienced traders are building long positions at BTC’s current price.
“Might be tempting to capitulate to the siren song of bearish influencers after the rout of last week.
But find courage in the fact that every person I know who has made nine figures or more from this space is adding to longs in this move down.”
Light says that long positions on crypto exchange Bitfinex are soaring to all-time highs.
“Bitfinex whales are buying your capitulation again anon, like they did in July last year, twap [time-weighted average price] in addition to limit bid walls.”
Bitcoin is trading for $30,889 at time of writing. The top-ranked crypto asset by market cap is down more than 9% in the past 24 hours.
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