Important evaluations came from two Bitcoin analysts today. Analysts say they will take a short position. Let’s have a look at the details.
Doctor Profit’s bitcoin analysis
There are reviews from Doctor Profit, a respected analyst and trader active on Twitter. Accordingly, the analyst provides valuable information on Bitcoin’s price action. His analysis covers several key aspects that shed light on the future direction of the cryptocurrency. Previous reports by Doctor Profit highlight the importance of the daily EMA50 for Bitcoin.
He highlights that Bitcoin has successfully surpassed the EMA50 and has undergone multiple retests. Also, the sideways movement of BTC is creating a notable pool of liquidity around $30,500. However, the $32,000 pool of liquidity has dwindled as traders pull back as they potentially take profits during the sideways trend.
Short selling strategy and goals
Doctor Profit’s trading strategy for the last 60 days revolves around accumulating short positions in the $31,800 to $30,000 range. He plans to continue this approach, considering the $30,500 range for his next short orders.
His ultimate goal is to take a substantial short position towards $24,000 by the end of the year. He emphasizes that this strategy requires patience and is aimed at a specific audience rather than ordinary day traders.
Technical and psychological analysis
As BTC continues its sideways movement, Doctor Profit is identifying smaller liquidity pools at $28,800 and $28,300 as potential short-term targets. Despite the unchanged situation, Bitcoin continues its bearish trend since the 31k zone, claiming the local top has been reached. Although Bitcoin has managed to break above EMA50, Doctor Profit is skeptical about the authenticity of this breakout. He suggests that the breakout can be evidenced by excessive leverage, not by actual volume. He predicts that Bitcoin may lose EMA50 in the near future.
Doctor Profit sums up his simple strategy: Hedging short positions in the range of 31,800 – 30 thousand. Also potentially adding more shorts if Bitcoin revisits the $30,500 region. It reiterates its commitment to this strategy and its satisfaction with the current market conditions.
Analyst explains his course of action for Bitcoin
Gareth Soloway, an experienced trading expert and Chief Market Strategist at InTheMoneyStocks.com, highlights two key factors that could have a significant impact on BTC’s price trajectory in the near future. As Bitcoin enters a consolidation phase, these factors will shape its path amid predictions of a potential rally.
The views shared by Gareth Soloway in The David Lin Report highlight that spot exchange-traded fund (ETF) approval for Bitcoin plays a crucial role. Approval of such an ETF would mean a monumental milestone for the cryptocurrency industry. It has the potential to attract more institutional investment and support mainstream recognition of Bitcoin’s legitimacy.
Impact of Spot Bitcoin ETF approval
Soloway specifically points to the much-anticipated ARK Invest spot ETF. On the other hand, he states that the approval process encountered a delay. ETF approvals are important as they can trigger short-term price swings in the cryptocurrency market. In addition, the analyst underlines the need to be careful in monitoring any developments regarding possible delays.
The latest news regarding BlackRock’s spot Bitcoin ETF application draws attention. Accordingly, given the firm’s positive relationships with the Securities and Exchange Commission (SEC), it instilled optimism in the market. This development increases the importance of ETFs for the future of Bitcoin.
Government bond yields: An important indicator
Soloway also advises Bitcoin investors on government bond yields. Accordingly, he advises them to closely monitor the 10-year Treasury yield, in particular. It says what will happen if that return exceeds the 3.3% threshold. Accordingly, it creates additional pressure on treasury bonds. This has potential implications for the US government to sell out. Based on historical correlations, Soloway points out that the previous market declines in October coincided with the period when 10-year returns peaked at 3.3%. Exceeding this level will lead to an intensification of bond sales by the US government. Thus, it will indirectly affect Bitcoin and other assets.
Soloway also focuses on the high debt of the United States. According to Buan, he draws attention to the potential implications this has for the country’s financial stability. On the other hand, rising returns will indirectly affect the cryptocurrency market. It will also underline the interdependence of macroeconomic factors. Accordingly, the market expects Bitcoin’s halving to trigger a potential rally. Looking at cryptokoin.com, Soloway warns against an overly optimistic view. Accordingly, he predicts that Bitcoin could drop to $20,000 by the end of the year before experiencing another rally. He attributes the subsequent rise to the increasing adoption of cryptocurrencies.
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