Bitcoin’s consolidation over the previous few weeks hasn’t been seen as bullish by everybody. Case in level: institutional merchants on the CME are presently web brief on BTC futures.
Yet, a dealer says that these shorting have “horrible odds” of earning money.
Related Reading: Ethereum Could Soon “Rally Hard” as DeFi Hits Escape Velocity: Fund Manager
Bitcoin Is Historically Unlikely to Drop From Here
According to an analyst, Bitcoin has a traditionally low likelihood of dropping from the $9,000 consolidation.
He shared the chart beneath on June 21st for example this level. The chart reveals that Bitcoin has lately entered again into the logarithmic development curve that has supported BTC’s worth for the previous decade.
This suggests it has a low chance of falling beneath the underside of the curve, which is presently round $8,800, except there’s a black swan occasion like there was in March 2020:
“Here is a style: Except for the Covid-candle, #bitcoin by no means closed a 2W beneath the log development curve. So, in the event you brief tonight you will have horrible odds.”
Chart by crypto dealer “Polar Hunt” (@Polar_hunt on Twitter). Chart from TradingView.com
A Weak S&P 500 Could Threaten Bitcoin
Yet a weak S&P 500 and world equities market may threaten the Bitcoin bull case.
Wall Street corporations have noticed over latest weeks that the narrative that cryptocurrencies are totally uncorrelated with the inventory market has not held up.
Two Goldman Sachs executives got here out with a presentation indicating that Bitcoin and different digital belongings to not present viable diversification advantages over a conventional inventory/bond portfolio.
And JPMorgan analysts urged that after March’s crash, cryptocurrencies have successfully been buying and selling like equities do, reducing their worth proposition.
This implies that ought to the S&P 500 crash, so too ought to Bitcoin.
And sadly for bulls, outstanding buyers see the S&P 500 pulling again because the economic system fails to match the pace of the restoration within the worth of shares.
Scott Minerd, the worldwide CIO of Guggenheim Partners, stated that he thinks that the S&P 500 may retrace practically 50% to 1,600 factors.
Minerd attributed his bearish sentiment to 3 core tendencies/indicators: the technical uptrend that the index shaped in March has been damaged, the argument of “Don’t combat the Fed” is flawed, and shares are extraordinarily overvalued as earnings drop whereas valuations enhance.
Related Reading: Crypto Tidbits: Bitcoin Holds $9k, Ethereum DeFi Gains Traction, Trump Talked BTC in 2018
This bearish sentiment has been echoed by Jeremy Grantham, a inventory dealer who known as earlier market tops like that seen in 2008-2009. Grantham instructed CNBC that he thinks a bubble is forming, calling present market situations “loopy.”
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
If Bitcoin Traders Short Here, They Have “Terrible Odds” Of Making Money: Analyst