1 week ago
This is simply a method investigation station by CoinDesk expert and Chartered Market Technician Omkar Godbole.
A U.S.-listed leveraged anti-Strategy (MSTR) exchange-traded money (ETF) surged past week, suggesting a imaginable bearish outlook for bitcoin (BTC) and MSTR.
The Defiance Daily Target 2x Short MSTR ETF, listed nether the ticker SMST connected Nasdaq, roseate 19%, its champion show since precocious February, according to information root TradingView. It was besides the 3rd consecutive play gain, the archetypal specified lawsuit since the ETF debuted successful August past year.
That's not all, the 19% surge pierced the bearish trendline, representing the meltdown from September 2024 highs of astir $2,368 to nether $20. The alleged bullish breakout is intelligibly disposable connected a long-scale play candlesticks chart. The log-scale is utilized for assets which person experienced exponential terms moves, arsenic is the lawsuit with SMST.
The macro-level trendline breakout is supported by a almighty bullish awesome successful the signifier of a bullish marubozu candle, indicating that buyers were successful steadfast power past week and momentum is present decisively upward. The bullish marubozu candle is identified by a salient greenish assemblage and little-to-no wicks (shadows), indicating purchaser dominance.
The wide takeaway for traders is that the SMST is suggesting a dour outlook for Strategy and bitcoin. Strategy is the largest publically listed bitcoin holder, possessing 628,791 BTC, worthy implicit $71 billion, arsenic of the clip of writing.
The 2x abbreviated ETF seeks to present regular concern results that are -200%, oregon minus 2x, the regular percent alteration successful the MSTR stock price. The money represents a bearish leveraged stake connected MSTR.
The ETF has seen a nett inflow of 16.3 cardinal successful the past six months, according to information root VettaFi. Meanwhile, its bullish peer, the 2x agelong MSTR money (SMST), has seen nett outflows of implicit $275 million.
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