This Trader Reduced Bitcoin to $5,950

Scott Nations, the president, and chief investment officer of NationsShares, a division of Fortress Trading, shorted Bitcoin via the Cboe futures market live on CNBC on September 26. From that time, the price of Bitcoin has somewhat risen to $6,500.

“I want to be a seller of the October contract. The Cboe Bitcoin futures that are a single Bitcoin in a futures contract. My targeted downside is $5,950 and my stop to the upside is $6,600. Why do I want to short? Because it is Bitcoin. It has no fundamental value. We’re in an unraveling of this colossal bubble and the only thing going for it is hope, and hope is a horrible strategy,” Scott said.

Given that Scott shorted Bitcoin at $6,370, the price of Bitcoin has risen by 2 percent, suggesting stability in the mid-$6,500 regions.

Holders of short contracts of Bitcoin and other leading cryptocurrencies such as Ethereum and Ripple has lost out greatly in the past week, particularly as XRP, the native cryptocurrency of Ripple reported a three-fold rise in value and ETH, the base currency of the Ethereum network, showed a decent increase during the same time.

It is challenging for short contract holders to bet against the cryptocurrency market at the present stage of the recovery because according to investors such as Mike Novogratz, the market is in a bottoming out process wherein it has started to show signs of seller tiredness.

Novogratz stressed that once Bitcoin goes above major resistance levels at $6,800, $8,800 and $10,000, the cryptocurrency market could also see an increase in demand from institutional investors that could boost the price of Bitcoin by more than 30 percent by the end of the year.