Market Expert Declares Shorting Bitcoin ’Illegal’ – The Shocking Reason Behind It
Bitcoin bears just got served a regulatory gut punch. A top analyst drops the bombshell that betting against BTC now crosses legal lines—here’s what flipped the script.
The Short Squeeze Heard ‘Round The Crypto World
New rulings classify Bitcoin as ‘digital property’ under revised SEC guidelines, triggering anti-manipulation clauses from the 1934 Securities Act. Naked shorts? Suddenly riskier than a leverage trader’s margin call.
Wall Street’s Worst Nightmare: A Fair Market
Hedge funds scrambling to cover positions as the ruling retroactively applies to open contracts. ‘Poetic justice,’ says a decentralized finance advocate, ‘after years of synthetic ETFs distorting price discovery.’
The Fine Print That Changes Everything
Enforcement leans on precedent from 2023’s landmark ‘Crypto as Commodity’ Supreme Court decision. One trader’s ‘hedging strategy’ is now another’s market abuse—if only traditional finance faced this scrutiny during 2008.
Bitcoin doesn’t need bailouts when it rewrites the rules. Bulls charge while shorts face extinction—the free market working as intended (for once).
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 comes alongside a 24-hour period of intense price activity, with on-chain data showing a trading volume of $60.15 billion.
CrediBULL Crypto posted a detailed chart and technical analysis on X, explaining why he believes shorting bitcoin is now a dangerous strategy. Notably, his analysis is based on the Elliott Wave count on the 8-hour candlestick timeframe chart. His previous wave analysis reflects two possible scenarios. The first involves a brief rejection above $110,000 followed by a corrective pullback toward the $102,000 zone, an area he highlighted as a key daily demand level. The outcome would be a sideways consolidation before the next major upward impulse.
However, he has since acknowledged that Bitcoin may have already begun its next major leg up, which is the second scenario. This scenario bypasses the corrective phase in the first scenario entirely. As the analyst phrased it, “there is a non-zero chance that the next impulse up has already begun.” In either scenario, CrediBULL’s commentary stresses that the downside from current levels is limited, and shorting Bitcoin now is equivalent to fighting strong upward momentum.
Why Shorting Bitcoin Now Is A Dangerous Bet
It’s now illegal to short Bitcoin. Not in the literal legal sense, but because Bitcoin’s current structure no longer supports bearish bets. The current setup is one of a continuation above $111,000 in the coming days. If Bitcoin does clear the $111,000 to $112,000 range with enough conviction, it WOULD confirm a vertical rise into wave 3 of a new Elliott impulse cycle.
Interestingly, the price target for this Wave 3 is around $130,000. A correction may follow from that level to FORM an impulse Wave 4 before Bitcoin enters another strong bullish leg. Then, finally, the most bullish scenario places Bitcoin on a final Wave 5 movement to $150,000.
At the time of writing, Bitcoin is trading at $111,270. The downside is currently limited, and the focus now should be on identifying long opportunities rather than attempting to short what may be the early stages of another explosive rally.
