Yes, there are traders looking to short Bitcoin even in today’s roaring BTC market. The Bitcoin price has survived the Coronavirus pandemic and is well on its way to touch new highs. However, there’s a huge segment of traders willing to go against the trend and short Bitcoin. Despite the ongoing move beyond $12,000, some bears think that this is the upper limit for BTC/USD pair.
Bitcoin price has been repeatedly rejected from $12,000 level, which is causing concern for the bulls. Many traders think that the price could spiral down towards $9,000 mark. Despite some bearish omens, fund manager Charles Edward believes that there’s no reason to go all gloomy on the crypto king and short Bitcoin.
Charles cites a number of Bitcoin-related macro factors that will drive the next bull rally and push the price to fresh new highs. Here are four factors that Charles thinks will push Bitcoin price upwards in the coming days.
1. Adoption by Dave Portnoy
Winklevoss twins helped Dave Portnoy, a famous day trader, purchase Bitcoin. This is nothing short of mainstreaming Bitcoin into the traditional trader’s psyche. Crypto analysts think that the move will introduce Bitcoin to thousands of Dave’s followers. It can certainly spurt BTC trading and increase the exposure of Bitcoin to many more ‘Robinhood’ traders.
2. Federal Reserve digital dollar project
The news of Federal Reserve collaborating with MIT for a digital dollar project has the crypto community all excited. Even though the project is a research experiment, it certainly reflects how the Federal Reserve is warming up to cryptocurrencies. Given the reserve currency status of the US dollar, the project carries global financial importance.
The digital dollar research project will be a milestone in central bank digital currency policy development. The project will also spark interest in Bitcoin and crypto assets, in general.
3. Increasing Tether market cap
The market capitalization of Tether is increasing at a rapid rate. The recent rise of 25 percent pushed Tether market cap beyond $10 billion level. The surge indicates an increasing capital interest in BTC and other altcoins. A move to short Bitcoin may backfire.
4. A major portion of Bitcoin supply still waiting to move
Despite new BTC/USD highs being posted daily, blockchain data indicates that a significant portion of Bitcoin supply hasn’t entered circulation yet. This means that big players are yet to take part in the current rally. Glassnode data shows that 61 percent of BTC stored in wallets is stagnant for the past 12 months. So, wait for the whales to make some big moves before traders short Bitcoin.
Fundamental factors are all lining up to support a further bull rally in Bitcoin price. Let’s see how long the $12,000 resistance holds up against a raging bull phenomenon.