Why Now Is The Perfect Opportunity To Short Bitcoin Down To $40,000
A current submit by crypto analyst Stockmoney Lizards on X means that the present Bitcoin construction is giving bears “the right alternative” to quick the market all the way down to $40,000. His message was paired with a chart displaying Bitcoin falling under an essential resistance ever because it broke under $100,000, creating what seems to be a clear continuation setup for traders expecting deeper losses.
However, though the chart highlights the same bearish construction in 2022, the evaluation behind his submit factors to a extra layered interpretation of what could come subsequent for Bitcoin.
The Setup Bears Believe Is Finally Here
In the chart he shared, Stockmoney Lizards showed how Bitcoin’s newest breakdown resembles the 2022 sample, when the value motion rejected a significant resistance degree and fell sharply into what later turned a big accumulation zone. The present construction reveals the same rejection simply above the $100,000 zone, adopted by a drop under the weekly EMA50. This transfer has introduced Bitcoin right into a area that’s much like the vary the place accumulation shaped within the earlier cycle.
An overlay of the brand new worth motion on high of the earlier one reveals the trail downward appears virtually predetermined, creating the impression that the Bitcoin worth is organising a pure decline to as little as $40,000 within the coming weeks and months. Bitcoin is at the moment buying and selling at $90,240. A crash to $40,000 would mean wiping out roughly 55% of its worth from right here, successfully erasing all the progress it has constructed over the previous two years.
Bitcoin Price Chart. Source: @StockmoneyL On X
Why The Perfect Short Is Not The Analyst’s Real Message
After the submit gained traction, Stockmoney Lizards stepped in to clarify that his message had been taken too actually. His invitation for merchants to quick all the way down to $40,000 was deliberately exaggerated, and the market doesn’t behave this fashion.
He clarified that he doesn’t foresee a collapse right into a deep bear market. Instead, he believes Bitcoin may consolidate, presumably sweep native lows, however not have a chronic breakdown. Furthermore, he famous that the worst-case situation can be a contact of the weekly EMA200, and this isn’t a spot the place bull markets finish. The actual midterm prediction is the next transfer for the Bitcoin worth.
Before posting the supposedly bearish prediction, Stockmoney Lizards had shared another analysis describing Bitcoin as being near the endboss on the weekly EMA50 indicator.
Bitcoin Price Chart. Source: @StockmoneyL On X
That earlier chart supplied a clearer view of his precise stance. In it, he predicted that Bitcoin was approaching a significant technical pivot and that he expected upward movement into the tip of December and Q1 2025. Therefore, the weekly EMA50 is the barrier that Bitcoin must reclaim to be able to launch its subsequent part of bullish momentum.
