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 at the moment web quick on BTC futures.

Yet, a dealer says that these shorting have “terrible odds” of earning profits.

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 instance this level. The chart reveals that Bitcoin has not too long ago entered again into the logarithmic progress 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 at the moment round $8,800, except there’s a black swan occasion like there was in March 2020:

“Here is a taste: Except for the Covid-candle, #bitcoin never closed a 2W below the log growth curve. So, if you short tonight you have terrible 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 international equities market may threaten the Bitcoin bull case.

Wall Street companies 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 signifies that ought to the S&P 500 crash, so too ought to Bitcoin.

And sadly for bulls, outstanding traders see the S&P 500 pulling again because the financial system fails to match the velocity of the restoration within the worth of shares.

Scott Minerd, the worldwide CIO of Guggenheim Partners, mentioned that he thinks that the S&P 500 may retrace practically 50% to 1,600 factors.

Minerd attributed his bearish sentiment to a few core traits/indicators: the technical uptrend that the index fashioned in March has been damaged, the argument of “Don’t fight the Fed” is flawed, and shares are extraordinarily overvalued as earnings drop whereas valuations improve.

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 informed CNBC that he thinks a bubble is forming, calling present market situations “crazy.”

Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com If Bitcoin Traders Short Here, They Have "Terrible Odds" Of Making Money: Analyst