A closely followed crypto strategist and trader is bullish on Bitcoin as we start 2022, highlighting two key catalysts that can ignite a BTC resurgence.
Crypto strategist Kevin Svenson tells his 82,000 Twitter followers that Bitcoin is due for a rally as he believes sell-side pressure is about to see a significant decline.
“Tax harvesting is finished.
Forced exchange selling in China finished.
Selling pressure is about to be reduced by 10 fold. Bitcoin recovery is underway.”
According to Svenson, market participants who suffered losses this year are selling their Bitcoin holdings in an effort to reduce their tax bills. The crypto trader adds that the “tax harvesting” ended on December 31st, noting that it could alleviate the selling pressure.
As for the forced China selling, Svenson is referring to BTC supply coming from users of Hong-Kong-based crypto exchange Huobi. In late September, Huobi published a notice that it will retire accounts of mainland China users by December 31st, 2021 to comply with local laws and regulations.
According to Svenson, the selling pressure coming from Chinese users converting their crypto into fiat will soon be gone.
"The selling pressure has been mounting ahead of that ban as users from China seek to sell crypto and convert to fiat before the December 31 deadline"
"Huobi has a December 31 2021 deadline "to retire existing China user accounts"
Selling pressure will soon be gone!#Bitcoin ?
— Kevin Svenson (@KevinSvenson_) December 31, 2021
Looking at the long-term prospects of Bitcoin, Svenson says that BTC is trading within a large ascending triangle, indicating a very bullish market structure.
“Overall, when you look at this chart, if you are a professional investor, you’d see this as a positive chart. Ascending structure, higher lows, increase in demand overall. Retail crypto traders are just overly emotional because most are holding altcoins. Tune out the noise.”Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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