Nonetheless, all good things must come to an end, including this rally. The cryptocurrency industry anticipates that prices will begin to decline and the rally will end.
Kevin Svenson, the analyst who foresaw the cryptocurrency collapse earlier this year, has once again weighed in on the current price rebound and analyzed market fluctuations.
The cryptocurrency market entered the reconsolidation phase last week, but several key coins and assets have experienced significant price declines this week. However, Svenson believes the rise will continue for a longer period of time and cautioned his followers about the potential risks associated with positions they may open in the coming days.
Market shorting could be risky.
On Twitter, Svenson cautioned traders and investors against shorting the market at the moment. The price charts of two of the most prominent currencies in the world, Bitcoin and Ethereum, indicate that a breakout is imminent. According to Svenson, even though the price of Bitcoin has increased by 33% since mid-June, it is still trading at a relatively low level.
Recent price declines may not be enough to prevent the bullish market scenario from materializing. Shorting the market could be dangerous because a breakout could be imminent. Investors should wait until the cryptocurrency market has stabilized, as it is still in the process of recovery and prices may increase in the near future.
CryptoTo Emerge As The Winner?
According to other experts, the current EMA works against shorting and should only be used in the event of a change in momentum. Recent estimates indicate that Ethereum has liquidated short bets worth $29 million in the past 24 hours. Following the market crash, Bitcoin and Ethereum are currently in the reconsolidation phase; ETH derivatives attracted more capital than BTC derivatives.
Bitcoin and Ethereum were valued at $23,761 and $1,876, respectively, at the time of writing.