Bitcoin’s price action has shown intense strength in recent days as it fully bounces back from the weakness observed in late June. After briefly dipping to the low $108,000 range in the past 24 hours, Bitcoin has surged to a new all-time high of $112,022. According to data from Coinglass, this upward move has triggered over $470 million in short liquidations across the crypto market.
Bitcoin’s latest price behavior has sparked a shift in sentiment among traders and aligns with the argument that the window for shorting may have officially closed. According to crypto analyst CrediBULL Crypto, it is now effectively “illegal” to short Bitcoin.
New Bitcoin Impulse May Have Already Started
Taking to the social media platform X, crypto analyst CrediBULL Crypto noted that it is now illegal to short Bitcoin. This comment arises against a backdrop of heightened price activity, with on-chain data revealing a trading volume of $60.15 billion.
CrediBULL Crypto shared a detailed chart and technical analysis on X, illustrating why he believes shorting Bitcoin is now a risky strategy. His analysis, based on the Elliott Wave count on an 8-hour candlestick timeframe, presents two possible scenarios. The first scenario involves a brief rejection above $110,000 followed by a corrective pullback toward the $102,000 zone, which he identifies as a significant daily demand level. Such a development would likely precede a period of sideways consolidation before the next major upward impulse.
However, CrediBULL Crypto has since reconsidered, suggesting that Bitcoin may have already begun its next major leg upward, bypassing the corrective phase entirely. As he noted, ‘there is a non-zero chance that the next impulse up has already begun.’ In both scenarios, his commentary emphasizes that the downside risk from current levels is limited, making shorting Bitcoin at this juncture tantamount to resisting strong upward momentum.
Why Shorting Bitcoin Now Is A Dangerous Bet
In essence, shorting Bitcoin has become an unwise endeavor. Although not illegal in a formal sense, Bitcoin’s current structure does not support bearish positions. The current setup indicates a bullish continuation above $111,000 in the forthcoming days. Should Bitcoin convincingly breach the $111,000 to $112,000 range, it would confirm a vertical rise into wave 3 of a new Elliott impulse cycle.
Interestingly, the price target for this Wave 3 is approximately $130,000. Following such a surge, a correction might occur, marking impulse Wave 4 before Bitcoin embarks on another robust bullish leg. Ultimately, the most optimistic projections suggest Bitcoin may reach $150,000 in its final Wave 5 movement.
At the time of this writing, Bitcoin is trading at $111,270. The potential for downside movement appears minimal, and the immediate focus should shift toward identifying long opportunities rather than attempting to short what seems to be the early phases of another explosive rally.
