Bitcoin spot prices may have dropped. One analyst remains unfazed and believes that the coin will reverse its recent losses before December 2024. BTC spot prices are down 11% since the 2024 peak and struggle to create enough buying pressure.
The History of Bitcoin and its Rally to New Highs
Taken to X by the analyst highlights Historical price patterns can be analyzed using the Fisher Transform 2 week indicator. This tool is used to detect potential reversal points, like double tops and bottoms. Although the technical indicator has a tendency to lag, in the past it was able accurately predict peaks.
The Fisher Transfer indicator gave a warning in 2021 when Bitcoin reached over $69,000. This signal highlighted potential peak levels. Prices fell in the weeks that followed this indicator.
Bitcoin fell to just $16,000 at the end of the year 2022. The collapse of FTX as well as the bankruptcy of other popular cryptocurrency hedge funds such as Three Arrow Capital ( 3AC) accelerated the decline.
Analysts also stress the significance of this indicator for identifying a possible single peak in the second half of 2018.
Currently, the trader reported that prices are nearing 2017 levels. Prices then created what an analyst called a “more subtle initial rise” Six months later, the peak was over $20,000
This indicator leads to this. “pauses” Bitcoin is likely to record an increase in value no matter where you are. “single top.” It is only with time that we will know where the top of this list will end up.
What Happened When Hedge Funds Sold at Top Prices?
It is not surprising that this forecast comes at a time of significant change. bearish bets By leveraged hedge fund. The United States Commodity Futures Trading Commission’s (CFTC) data shows that hedge funds are a growing trend. held Record Your Own – “short” Last week, positions held in Bitcoin futures contracts.
The largest position in shorts since 2017 was over 16, 000 contracts. They expected the prices to drop, and that’s exactly what is happening with spot rates.
In response to this, an analyst said that even though hedge funds were shorting, the premium on futures was still high. These crypto hedge fund are currently taking advantage of the current trend.
As the United States Federal Reserve appeared to be hawkish as well as positive economic reports started flooding in, shorts might increase. Federal Reserve is a data driven central bank and may not reduce rates as rapidly as first anticipated.
Chart from TradingView, Featured image by DALLE
Disclaimer article It is intended solely for educational use. NewsBTC has no opinion about whether or not to purchase, sell, hold investments. Naturally investing involves risks. We recommend that you do your research. own Do your research before you make any investments. You are solely responsible for the use of information on this site. own risk.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: www.newsbtc.com