Currently, Bitcoin (BTC) and Ethereum (ETH) are dominating the cryptocurrency markets and fending off the bears. So far, the markets have made a respectable recovery, although they encountered a number of barriers along the way.
However, all good things must come to an end, and this rally is no different. The cryptocurrency industry is expecting the price to start lower and the rally to stop.
Kevin Svenson, the expert who foresaw the cryptocurrency meltdown earlier this year, has provided his thoughts on the current price rebound yet again and has analyzed the market ups and downs.
The cryptocurrency market entered a restructuring phase last week, but the week saw a significant drop in the prices of several major tokens and assets. However, Svensson believes the rise will be longer and cautioned his followers about the potential risks involved in opening positions over the next few days.
Shorting the markets could be risky
Svenson warned traders and investors on Twitter that shorting the markets could be a bad idea at the moment. The price charts of Bitcoin and Ethereum, two of the most prominent currencies in the world, indicate that a breakout is impending. Even if the price of Bitcoin has soared by 33% since mid-June, as per Svenson, it is still trading at a relatively low level.
The recent price reduction may not deter the bullish market scenario from succeeding. Shorting the market can be risky as a breakout may be just around the horizon. Investors should wait for the cryptocurrency market to stabilize as it is still recovering and the price could rise in the near future.
Ethereum To Emerge As The Winner?
The current EMA, in the opinion of other experts, works against shorting and should only be used in the event of a change in the current momentum. According to recent estimates, Ethereum has liquidated $29 million worth of short bets during the past 24 hours. Bitcoin and Ethereum are currently in the reconsolidation phase following the market meltdown; ETH derivatives attracted more capital than BTC.
At the time of writing, Bitcoin and Ethereum were at $23,761 and $1,876, respectively.
