From a technical point of view, many traders believe that Bitcoin is bearish.
On-chain trends, after miners and other big players have started liquidating their holdings, show that there is reason to believe that Bitcoin could go backwards
However, several analysts comment that there is one big reason they are reluctant to short here: inflows from Wall Street.
The entry of prominent Wall Street names into the crypto asset space has made many hesitate to go short here. For example, a hedge fund that buys $ 1 billion worth of BTC would likely instantly invalidate any bearish pattern that might appear on the Bitcoin chart.
Why many traders are bullish on Bitcoin right now
A historically correct trader named „Bitcoin Jack“ is hesitant to short BTC now after watching the institutional adoption of cryptocurrencies lately:
„One of the reasons I gave up the idea of taking another significant short position is because I don’t want to bet against the brutal power of billionaires.“
He adds that while there is technical data that suggests that Bitcoin (buy now? Click here for instructions) has room to fall down – these signals can, due to the amount of capital flowing into the room, can be easily picked up:
“The reality is, I don’t know what’s going to happen from here. Large streams of money flow into Bitcoin. Tech specs that say a downtrend is possible can be blown out of the water, while we shouldn’t forget that institutional Bitcoin is not yet fully mastered. “
Just yesterday, an insurance company with at least $ 230 billion in assets under management made its first purchase of Bitcoin , buying $ 100 million worth of it.
Then, just an hour ago, MicroStrategy announced that the company is ready to buy $ 650 million worth of BTC in the coming weeks, which will almost certainly have an impact on the market.
Another trader known as „Mayne“ joins Jack’s concern and asks his followers if they think „big players“ buying BTC will be enough to catch the bearish technical trends that are affecting the Play charts, negate.