2023-12-8 13:39 |
Prominent crypto analyst Chase sees growing signs professional traders may be shifting to a bearish stance on Bitcoin (BTC), warning a significant dip could occur before any push to new all-time highs.
Mounting Euphoria Around BTC In a recent Twitter thread, Chase noted that “From the comments and replies, I see an endless stream of euphoria surrounding the ETF,” referring to a proposed Bitcoin exchange-traded fund (ETF) that many believe could boost prices if approved. However, he sees over-optimism as a contraindicator: “It reads like a typical normie trap to me.”
Short Positions Increasing
More importantly, Chase reveals “From the best traders I know on here, some have begun shorting (not all), but almost all are taking profit.” Short positions allow traders to profit when an asset’s price falls. If top traders are leaning bearish, a drop could be ahead.
Potential Retracement to $20K
As a result, despite Bitcoin rallying some $20,000 since initial ETF application announcements, Chase believes “I’m still bearish from the 40’s looking for low 30’s or even low 20’s before new ATH’s [all-time highs].” That implies a potential 47% peak-to-trough decline from around $48K currently to near $20K if selling pressure accelerates.
History Shows Pullbacks Possible
While many investors now feel Bitcoin won’t drop below $30K again, Chase argues “we’ve seen what this market can do. Every up-only has been followed by a down-only.” With Bitcoin failing to break out sustainably above its April highs so far, the possibility of a major pullback can’t be discounted.
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The post Expert Warns Bitcoin Could Return to $20K Before Reaching New Highs, as Top Traders Begin Shorting BTC appeared first on CaptainAltcoin.
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