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Breaking: Top Analyst Reveals Why Shorting Bitcoin Is Now Effectively Illegal

Breaking: Top Analyst Reveals Why Shorting Bitcoin Is Now Effectively Illegal

Published:
2025-07-08 09:52:45
14
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The crypto markets just got a seismic shock—and short sellers are scrambling to cover.

### The Death Knell for Bitcoin Shorts

A bombshell analysis from a heavyweight strategist claims regulatory claws have finally sunk into crypto’s wild west. Forget 'not financial advice'—this time, the hammer’s coming down hard.

### Regulatory Roulette Turns Deadly

New enforcement actions—buried in last week’s policy fine print—reportedly classify BTC short positions as 'market manipulation' under revised statutes. One hedge fund manager already got liquidated in more ways than one.

### Wall Street’s Worst Nightmare

With synthetic shorts now in the crosshairs, institutional traders face a brutal choice: flip long or face the SEC’s wrath. Meanwhile, crypto OGs are laughing all the way to their non-custodial wallets.

Funny how the 'free market' only applies until the suits start losing money.

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That scenario involved an Elliott Wave structure identified as a W-X-Y pattern. In this context, wave W may have completed at the daily demand area below $99,000, with wave X expected to form above $114,000. Following this, wave Y could develop as bitcoin completes an existing symmetrical triangle. Notably, he projects the breakout target for this structure to be above $120,000. Subsequent consolidation could occur around $136,000, with further extension potentially reaching above $154,000. For context, Bitcoin would need to surge approximately 42.21% to reach this level. Bitcoin's Most Bullish Case  However, while CrediBull still considers this W-X-Y scenario probable, he also acknowledges the possibility that the next major impulse has already begun, marking the most bullish case.  In this alternative Elliott Wave count, Bitcoin is seen as having completed wave 1, currently in wave 2, and potentially poised to begin wave 3 upon breaking the $111,941 resistance level. Under this scenario, wave 3 could extend above $128,000, followed by sideways consolidation in wave 4, and a final upward move in wave 5 targeting around $149,000 and higher, a 37.6% pump from the current.  In either scenario, CrediBull believes the downside for Bitcoin is relatively limited from current levels. He emphasized that it is important focus on long opportunities rather than attempting to short Bitcoin in what he sees as clear market strength.  The higher time frame (HTF) demand zone, located much lower, between $67,000 and $74,000, serves as a worst-case scenario if Bitcoin crashes. Bitcoin Ownership Data Points Bullish Elsewhere, Bitcoin’s ownership data adds to the bullish sentiment. A chart from IntoTheBlock illustrates the historical behavior of Bitcoin addresses segmented by holding time, holders (1Y+), cruisers (1–12M), and traders (Bitcoin Addresses by Time HeldBitcoin Addresses by Time Held In contrast, both Cruisers and Traders have declined, with a -1.48% and -2.76% change respectively, suggesting a shift from short-term speculation to long-term accumulation. Overall, this trend signifies growing maturity in the Bitcoin market and a more stable investor base.

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