Following the release of the US non-farm payroll data for August, the cryptocurrency market plunged sharply. Accordingly, Bitcoin, which had earlier in the day surpassed $80,000, retreated to $79,200 after the data release.
A similar situation was reflected in altcoins: Ethereum fell to $2,450, XRP to $1.4, and Solana to $101.
It remains unknown whether $BTC will rise above $80,000 again, but Jiang Zhuo'er, the Chinese founder of the mining pool $BTC.top, announced that he opened a short position on $BTC following its recent price increase.
Jiang Zhuo'er stated in his post on X that he opened a 100% short position on Bitcoin at an approximate price of $82,050.
The Chinese founder cited the weakening inflow of funds into spot $BTC ETFs as a key reason for opening the short position on Bitcoin. He stated that despite the first net outflow from ETF funds, he views Bitcoin's rise to around $81,500, which reached the upper boundary of the trading range, as a selling opportunity.
What Scenario Is Expected for Bitcoin?
According to Jiang, Bitcoin is likely to first retreat to the $70,000–$72,000 range. Jiang adds that he considers this range the last opportunity to buy Bitcoin.
After that, he expects the price of $BTC to fluctuate sideways between $76,000 and $82,000, with investors looking for profit-taking opportunities during this period.
On the other hand, Jiang claims that if Bitcoin rises to the $83,000–$84,000 level, he will cut his losses at $82,300.
However, these levels reflect Jiang's personal trading plan and do not necessarily mean that the Bitcoin price will follow this scenario.
Apart from Jiang, cryptocurrency analyst Murph also shared his expectations for $BTC. At this point, the analyst stated that a return of Bitcoin to the $63,000–$65,000 range is unlikely. Arguing that this range is used by large investors as an active accumulation zone, Murph specifically noted that new low prices were concentrated in the $63,000–$65,000 range from August 4th to 18th.
The analyst noted that a similar pattern was not observed in June and July, when $BTC remained in this range, indicating that large investors were rapidly accumulating $BTC in this range ahead of the recent surge. In turn, the analyst pointed to a similar pattern observed in January 2022, recalling a sharp price increase followed by a concentration of $BTC within a specific price range.
At this stage, the analyst added that the average acquisition cost for wallets containing between 100 and 1000 $BTC is approximately $67,087 USD, while the average cost for wallets containing between 1000 and 10,000 $BTC is approximately $61,107 USD, aligning with the previous accumulation zone and indicating that these levels are significant support zones.
*This is not investment advice.
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