It is a technical evaluation submit by CoinDesk analyst and Chartered Market Technician Omkar Godbole.
A U.S.-listed leveraged anti-Technique (MSTR) exchange-traded fund (ETF) surged final week, suggesting a possible bearish outlook for bitcoin (BTC) and MSTR.
The Defiance Day by day Goal 2x Brief MSTR ETF, listed underneath the ticker SMST on Nasdaq, rose 19%, its greatest efficiency since late February, in line with knowledge supply TradingView. It was additionally the third consecutive weekly achieve, the primary such occasion because the ETF debuted in August final yr.
That is not all, the 19% surge pierced the bearish trendline, representing the meltdown from September 2024 highs of round $2,368 to underneath $20. The so-called bullish breakout is clearly seen on a long-scale weekly candlesticks chart. The log-scale is used for property which have skilled exponential value strikes, as is the case with SMST.
The macro-level trendline breakout is supported by a strong bullish sign within the type of a bullish marubozu candle, indicating that consumers have been in agency management final week and momentum is now decisively upward. The bullish marubozu candle is recognized by a outstanding inexperienced physique and little-to-no wicks (shadows), indicating purchaser dominance.
The general takeaway for merchants is that the SMST is suggesting a dour outlook for Technique and bitcoin. Technique is the biggest publicly listed bitcoin holder, possessing 628,791 BTC, value over $71 billion, as of the time of writing.
The 2x brief ETF seeks to ship every day funding outcomes which are -200%, or minus 2x, the every day proportion change within the MSTR share value. The fund represents a bearish leveraged wager on MSTR.
The ETF has seen a internet influx of 16.3 million previously six months, in line with knowledge supply VettaFi. In the meantime, its bullish peer, the 2x lengthy MSTR fund (SMST), has seen internet outflows of over $275 million.
Learn extra: Bitcoin ETFs Bleed Millions for 4th Straight Day as U.S. Stagflation Fears Weigh on BTC and Stocks