Analyst Kevin Svenson Predicts Bitcoin Recovery As The New Year Begins
A prominent crypto analyst and trader, Kevin Svenson, believes that Bitcoin (BTC) is starting a recovery as the new year begins, noting two key catalysts as the drivers.
Svenson shared with his 82.2K Twitter followers that Bitcoin is due for a rally, predicting that sell-side pressure is about to see a large decline.
“Tax harvesting is finished.
Forced exchange selling in China finished.
Selling pressure is about to be reduced by 10 fold. Bitcoin recovery is underway.”
SHORTS ABOUT TO GET NUKED ?
Tax Harvesting is finished
Forced exchange selling in China finished
Selling pressure is about to be reduced by 10 fold#Bitcoin recovery is underway ?
The analyst says that market participants who took loss on Bitcoin this year are selling their Bitcoin holdings in an effort to reduce their tax bills. However, “tax harvesting” as Svenson calls it, ended on December 31st, which according to him it could ease the selling pressure.
Today is the last day for "Tax Harvesting"
Whatever amount of selling pressure Tax Loss selling has been putting onto the market will be gone after today. #Bitcoin will have an easier time finding a recovery soon. Keep this in mind.
Svenson also referred to Bitcoin supply coming from users of Hong-Kong-based crypto exchange Huobi. In September 2021, the exchange issued a notice that it will retire accounts of mainland China users by December 31st, 2021 to comply with local laws and regulations.
The selling pressure coming from Chinese users converting their crypto into fiat will soon be gone, the analyst says.
"The selling pressure has been mounting ahead of that ban as users from China seek to sell crypto and convert to fiat before the December 31 deadline"
"Huobi has a December 31 2021 deadline "to retire existing China user accounts"
The long-term prospect for Bitcoin seems very bullish, according to Svenson. BTC is trading within a large ascending triangle, which is a very bullish market structure, he points out.
“Overall, when you look at this chart, if you are a professional investor, you’d see this as a positive chart. Ascending structure, higher lows, increase in demand overall.
Retail crypto traders are just overly emotional because most are holding altcoins.
Tune out the noise.”
Overall when u look at this chart, if you are a professional investor, you'd see this as a positive chart. Ascending structure, higher lows, increase in demand overall
Retail crypto traders are just overly emotional because most are holding altcoins
