Bitcoin bull Andrew Left's Citron Research has called for a reigning-in of recent Bitcoin sentiment, placing a short bet against the "overheated" MSTR stock of Bitcoin-holding firm MicroStrategy.
Indeed, “overheat” appears to be a greater concern for the BTC price itself in recent days, as the world's leading cryptocurrency seemingly hits a wall just short of the coveted $100,000 valuation.
With a 10.73% rise since last Friday, the concern is that this may have been too much too quickly as the Bitcoin fear and greed index pushes further into "extreme greed" territory at 97.
However, a correction may not be in order just yet. The asset appears to be re-honing its path to $100,000, still enjoying significant volume with a further 6% increase, reaching $96 billion today.
Citron Research Bets Against MicroStrategy: Why Are They Hesitant?
Citron's move against MicroStrategy ignited a 16.2% slump in MSTR as of Thursday’s close, a reversal of the 15% gains over the past few days.
While advancements in MicroStrategy's plans to purchase an additional $42 billion of Bitcoin initially triggered a bullish rally for MSTR, traders seem to have reined in their expectations.
These concerns stem from skepticism about whether the recent bullish sentiment has solid backing, with Citron noting that "MSTR’s volume has completely detached from BTC fundamentals” in an X post.
Despite the bearish stance, Citron added that it remains bullish on Bitcoin overall: “Much respect to Michael Saylor, but even he must know MSTR is overheated.”
BTC Price Analysis: Is a Correction Due?
The firm’s position highlights the delicate balance between bullish enthusiasm and cautious realism in the current crypto market, especially as technical indicators begin to show cracks.
Most notably, as the daily Releative Strength Index (RSI) runs further into overbought territory at 82, a correction seems like the natural and healthy next step to reinforce the newfound high and discover supports to the uptrend.
Should a pullback occur, a local bottom in the mid-$90,000s seems plausible. This would reaffirm the upward-sloping trendline support that has guided much of Bitcoin's recent growth.
However, a push to $100,000 seems likely before any substantial correction takes place, allowing the market to catch its breath and potentially paving the way for more sustainable gains.
It’s important to note that a pull-back could not be the be-all and end-all for this cycle, as a recent breakout of a bullish cup-and-handle pattern forming since November 2021 sets a conservative BTC price target of $120,000 running into 2025.
As Bitcoin Loses Traction, This Low-Cap Gem is Gaining Steam
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The post Andrew Left's Citron Puts Short Bet on MSTR As This Low-Cap Meme Coin Gem Gains Traction appeared first on Cryptonews.
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