Yesterday, I was confronted with a curious publication wherein the author claimed that Bitcoin exhausted its bullish potential. What were the arguments in favour of such a point of view? Here are some crucial:
- Bitcoin has been fluctuating between 60 and 70 for 6 months in a row but cannot pass through 70, whereas sinking below 60 happened twice during the same period of time.
- Once Bitcoin is coming close to 70, someone large is beginning to sell actively.
- On the largest time frame, Bitcoin can be seen as though hitting the top border of the ascending channel
- The current situation resembles the events of 2021-2022 when Bitcoin was also enormously overbought and then collapsed.
- The current sentiment is extremely bullish that usually happens when an asset is close to its peak price.
- Nowadays there is a huge hype around Bitcoin so that the former US president as well as many other celebrities, officials promote Bitcoin.
- According to the COT Report, large speculators are holding the large net short futures position in Bitcoin
- At the moment Bitcoin looks fairly weak as if not wanting to go up any more, although it is subjective
- Bitcoin is a hefty bubble realizing the Ponzi scheme
All of the aforementioned are debatable points, but I cannot disagree that there is something reasonable in these thoughts.
To sum up, the author comes to the conclusion that Bitcoin is an asset to sell at the moment. He suggests selling in the range 60-70 carefully with putting S/L at about 75, in that he considers that Bitcoin will highly likely go down to 30-40 rather than rising above 70.
Is everything so bad for Bitcoin, and we'd better sell bitcoins?
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