Judging the current state of cryptocurrency trade, Bitcoin’s value appears to be declining. Even so, an established analyst remains committed, predicting a turn around in recent setbacks and an impressive rebound before hitting its peak in December 2024.
According to daily chart research, Bitcoin is having difficulty getting people to invest , even though its price has declined about 11% from it’s all-time high in 2024.
An esteemed analyst brought light on how prices have performed in the past by using the 2-week Fisher Transform indicator, a tool that is effective at finding possible reversal points like double summits or bottoms. Although its technical signs cannot always be accurate, this indicator has been able to correctly predict peaks in the past.
Bitcoin’s Signal: Fisher Indicator Analysis
As an example, the Fisher Transform indicator submitted a warning during the Bitcoin surge of 2021, when the price of Bitcoin increased above $69,000. Thereafter, the market went down in the weeks that followed.
As a result of the failure of FTX and several prominent crypto hedge funds, including Three Arrow Capital (3AC), Bitcoin fell to as minimal as $16,000 by the end of 2022.
According to the analyst, the signal is essential for determining the difference between a double top scenario, which is similar to trends in 2017 and 2021, and a possible single peak that is expected later this year.
Analysts state that Bitcoin’s prices are now getting close to levels seen in 2017. Within this time frame, prices began to rise gradually but surely before hitting an all-time high of over $20,000 six months later.
If this trajectory continues and the signal stays on its current path, Bitcoin is likely to reach a single peak. Nevertheless, time will tell what the exact peak number is.
A significant amount of bearish betting from leveraged hedge funds led to these predictions. The Commodities Futures Trading Commission (CFTC) recently released information indicating that these funds have opened record “short” bets in Bitcoin futures contracts in the past week.
This is the most significant short position since 2017—more than 16,000 contracts, according to observers. These organizations expect prices to go down by taking short positions, which is in line with the current downward trend seen in spot rates.
Nevertheless, despite the rise in short positions by hedge funds, another expert points toward the continued high premium in futures markets, following the dominant trend. Few crypto hedge funds are taking advantage of this trend.
According to futures markets, short holdings might rise as hawkish Federal Reserve officials take a stand and positive economic data flows . The Federal Reserve’s focus on data means that rate decreases might not happen promptly as first thought.
