BTC/USD Forecast: Continues To See Selling Pressure On Ralli| MENAFN.COM

Saturday, 04 February 2023 09:30 GMT

BTC/USD Forecast: Continues To See Selling Pressure On Ralli


(MENAFN- Daily Forex)
  • The btc/usd has tried to rally over the last 24 hours but ran into enough selling pressure to turn things around.
  • Ultimately, this is a market that I think has much further to go to the downside, which makes a lot of sense considering just how much fraud there has been in the crypto space.
  • Unfortunately, there are probably more bankruptcies to come, and of course, fraud to uncover.

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One of the metrics that I continue to see shown online is the fact that very little Bitcoin has been sold recently. That the longer-term holders are not moving their funds. Another thing that I see is that massive amounts of Bitcoin are moving off the exchanges. The theory was that when traders took their Bitcoin off-exchange and put it into cold storage, that meant that they had no interest in selling. However, there are a couple of massive holes in that theory as of late.Don't See a Bullish Outlook Anytime Soon

The first thing that I would bring to your attention is that we've just had FTX blowup, and several other lending platforms and crypto exchanges are going under. In that scenario, why would you want to keep your Bitcoin on an exchange? This has nothing to do with whether the trader plans on holding on to Bitcoin forever, it's a self-preservation move. The other part of this is that so few people have sold, and conviction seems to be there. I would postulate this question:“What if it is simply retail traders out there refusing to sell at a loss?” While you would think that's a good thing, the reality is they may be back holders, because it one point many years ago, a lot of people had stock in pets.com and watch it go to zero. I'm not saying that Bitcoin is going to zero, but I'm not foolish enough to think that just because retail traders won't sell at a loss that an asset has to eventually get back to previous prices. Even if it does, they will be more than willing to sell their position as close to breakeven as possible if they are underwater, especially if it's going to be a few years.

Going forward, I do not see a bullish outlook for Bitcoin anytime soon, and I do think that we have further to go. After all, the world is convinced that the federal reserve is going to pivot, yet Bitcoin has done almost nothing.

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