Analyst Who Accurately Predicted Crypto Crash Warns Investors; Here’s Why

Abigal Vee
August 18, 2022
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Bitcoin, ETH, XRP, SHIB Price To Rally After Israel-Hamas Ceasefire Declaration

Bitcoin (BTC) and Ethereum (ETH) are currently leading the crypto markets out of the grip of the bears. Although met with a series of resistance along the way, the markets have rallied quite well so far. However, like all things, rallies come to an end, and the community is expecting this one to hit a pause soon. A notable analyst has, nonetheless, mentioned that the recent rally is likely to persist at this point.

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Svenson thinks shorting the markets now is dangerous

Prominent analyst, Kevin Svenson, took to Twitter to warn the community against shorting the markets right now. Svenson came to this conclusion, taking into consideration the price movements of BTC and ETH as seen on two charts. “It seems like we’re going to break out,” Svenson said.

He highlighted a trend of “rapid movements” in both the Bitcoin and Ethereum 50 and 30-minute respective charts. Despite having gained by 33% since its scary drop mid-June, Svenson noted that BTC is currently “really low.” This should send the idea that the asset’s breakout has not yet priced in. Hence, the community should expect further surges.

A lot of people have been asking me the question, ‘when should we short the market?’ and I think it’s really dangerous to short into momentum,

he said.

Svenson mentioned that it is ill-advised to short the market when one’s EMAs indicate an uptrend.

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Ethereum is outperforming Bitcoin

A fellow analyst, buttressing Svenson’s point, noted that he has been telling his followers something similar. He mentioned that short positions should only come when there is an indication of a reversal in the current momentum.

However, another analyst disagreed, adding that shorts at resistance levels are welcome. Svenson highlighted that he was referring to holding a short position, and that short scalping can actually work.

The momentum from the recent rally appears to have decelerated of late. The markets are currently witnessing a mild correction, but sentiments remain bullish regardless. As has been the case for some time now, ETH appears to be outperforming BTC.

From the derivatives markets, liquidations have occurred more on long BTC positions in the past 24 hours. However, the reverse is the case with ETH, with $29M in liquidations for short positions in the past 24 hours. Funding Rate on ETH derivatives also look more promising than BTC’s.

At the time of writing, BTC and ETH respectively trade at $23,761 and $1,876. They’ve both shed some minor gains in the past 24 hours.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Abigal .V. is a cryptocurrency writer with over 4-years of writing experience. She focuses on news writing, and is skilled in sourcing hot topics. She’s a fan of cryptocurrencies and NFTs.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.