Many notable cryptocurrency traders are estimating that the opportunity for a Bitcoin (SV) short may be the easiest trade in years.
Bitcoin SV (BSV) has shockingly more than tripled in price since the beginning of 2020. However, it seems like the rally is running out of steam, and many are claiming that one of the greatest shorting opportunities may soon be among us.
Bitcoin SV Scam Pump Based on Wash Trading
To any layperson, the BSV rally feels rightly absurd. When looking at the market data closer, however, one discovers that wash trading is the main culprit and the market is being misled. Craig Wright’s Bitcoin knock-off has seen most of its trading volume take place on exchanges notorious for wash trading.
Exchanges like Biki, OKEx, MCX, Hotbit, Bibox, and others have hundreds of billions of dollars in ‘trading volume.’ For example, MXC claims a BSV/USDT trading volume of around $284M but its actual liquidity is just $61,000. There are countless other examples. The self-proclaimed ‘Satoshi Nakamoto’ and his associates seem to be behind the rally which coincides with an important court deadline.
The Shorting Opportunity of 2020
This scam pump seems likely to soon come crashing down and traders are getting ready for the big short. As Loomdart (@loomdart) tweeted recently, “I really can’t wait to short BSV… seems like it’ll be pretty clear when the time is right.”
Others have commented on the congestion currently taking place on the Bitcoin SV chain. With the network being clogged, many are unable to sell and lock-in profits. However, CryptoGainz (@CryptoGainz1) suggests that 1x shorting BSV futures is just as good of a strategy. According to him, he expects a flash dump once the network congestion clears up.
Bitcoin’s SV’s remarkable rise may soon provide us with an equally-remarkable shorting opportunity and has already retraced 36% since hitting a high of $423 on Jan 14.