Bitcoin’s price has been on a tear lately, recently hitting a new all-time high. This surge caused over $470 million in losses for traders betting against Bitcoin (shorting). One analyst believes shorting Bitcoin is now incredibly risky.
Why the “Illegal” Shorting Claim?
Crypto analyst CrediBULL Crypto declared on X (formerly Twitter) that shorting Bitcoin is effectively “illegal,” meaning it’s a very dangerous strategy right now. This isn’t about actual laws, but about the current market conditions. His claim is based on intense recent price action and technical analysis. Trading volume was huge, exceeding $60 billion in just 24 hours.
The Analyst’s Technical Take
CrediBULL Crypto’s analysis uses Elliott Wave theory, a way of predicting market movements based on patterns. His charts show two possible scenarios:
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Consolidation before a big move: A brief dip below $110,000 followed by a recovery to around $102,000 before another big price increase.
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The rocket takes off now:
Bitcoin might skip the dip entirely and just keep going up. He says there’s a good chance this is already happening.
Regardless of which scenario plays out, the analyst emphasizes that the potential for Bitcoin’s price to drop significantly is low. Shorting now would be betting against a strong upward trend.
Why Shorting is Risky Now
Essentially, Bitcoin’s current price action doesn’t support bearish bets. If Bitcoin breaks through the $111,000-$112,000 range, it could signal the start of a massive price increase (Wave 3 in his Elliott Wave analysis), potentially reaching $130,000. Further bullish waves could even push Bitcoin to $150,000.
The bottom line is that the risk of losing money by shorting Bitcoin right now is very high. Instead of trying to profit from a price drop, the focus should be on finding opportunities to buy and profit from the potential continued rise.
