The cryptocurrency market experienced a sharp decline following the release of US non-farm payroll figures for August. Accordingly, Bitcoin, which was above $80,000 earlier in the day, retreated to $79,200 after the data was released.
This situation was also reflected in altcoins, with Ethereum falling to $2,450, XRP dropping to $1.4, and Solana falling to $101.
While it remains to be seen whether BTC will rise above $80,000 again, Jiang Zhuoer, the Chinese founder of the BTC.top mining pool, announced that he has taken a short position in BTC following the recent price increase.
Jiang Zhuoer stated in a post on X that he took a 100% short position on Bitcoin at approximately $82,050.
The Chinese founder cited weakening money flows in spot BTC ETFs as a key reason for taking a short position on Bitcoin. He stated that despite seeing the first net outflow from ETF funds, he viewed Bitcoin’s rise to around $81,500, reaching the upper end of its trading range, as a selling opportunity.
What Scenario is He Expecting for Bitcoin?
According to Jiang, Bitcoin is likely to first retreat to the $70,000-$72,000 range. Jiang adds that he considers this region to be the last buying opportunity for Bitcoin.
Following this, he expects BTC to trade sideways between $76,000 and $82,000, with investors looking for profit-taking opportunities during this period.
On the other hand, Jiang states that if Bitcoin rises towards the $83,000-$84,000 region, he will cut his losses at $82,300.
However, these levels reflect Jiang’s personal trading plan and do not necessarily mean that the Bitcoin price will follow this scenario.
Besides Jiang, cryptocurrency analyst Murphy also shared his expectations for BTC. At this point, the analyst stated that a return to the $63,000-$65,000 range for Bitcoin is unlikely. Arguing that this region is used as a strong accumulation area by large investors, Murphy specifically noted that new cost floors were concentrated in the $63,000-$65,000 range between August 4th and August 18th.
The analyst noted that this pattern did not emerge in June and July when BTC remained within this range, suggesting that large investors rapidly accumulated BTC there before the recent surge. Conversely, the analyst pointed out that a similar pattern emerged in January 2022, recalling that a sharp price increase followed by a concentration of BTC within a specific price range.
At this point, the analyst added that the average acquisition cost for wallets holding 100 to 1,000 BTC is approximately $67,087, while the average cost for wallets holding 1,000 to 10,000 BTC is approximately $61,107, which coincides with the previous accumulation zone and indicates that these levels are significant support areas.
*This is not investment advice.
Continue Reading: Chinese Founder Announces Short Position in Bitcoin, Issues Alarm for These Levels! Here’s the Scenario He Expects!