Analyst Says It’s Now ‘Illegal’ to Short Bitcoin as Price Eyes $120K Breakout

A well-known crypto analyst, CrediBull Crypto, has sparked attention by saying that it’s now practically “illegal” to short Bitcoin. While he doesn’t mean this in a legal sense, the analyst is highlighting that the current market conditions are too bullish for shorting to make sense. His comment comes as Bitcoin trades at around $108,295, slightly down by 0.59% in the last 24 hours but still showing strength over the past week with a 1.26% gain. After reaching a local high of $110,307 on July 3, Bitcoin has entered a sideways phase, but analysts suggest this could be the calm before a major rally.

CrediBull initially predicted that Bitcoin might get rejected above the $110,000 mark and fall back toward $102,000 before starting a new upward move. His analysis is based on an Elliott Wave pattern, known as the W-X-Y structure. In this setup, wave W may have already ended below $99,000, and wave X is expected to peak above $114,000. After this, wave Y could break Bitcoin out of a symmetrical triangle pattern, targeting prices above $120,000. He also mentions the possibility of further gains toward $136,000 and even as high as $154,000 if the momentum continues. That would represent a gain of over 42% from the current level.

But there’s an even more optimistic scenario. According to CrediBull, it’s possible that Bitcoin has already begun its next major impulse wave. In this alternative Elliott Wave count, Bitcoin has completed wave 1, is currently forming wave 2, and could be ready to enter wave 3. This wave is often the strongest in any Elliott Wave pattern. If Bitcoin breaks above the $111,941 resistance level, it could surge to $128,000 in wave 3, followed by brief consolidation in wave 4, and finally push up to around $149,000 in wave 5. That would mark a 37% gain from where the price stands now.

In either scenario, the analyst believes the downside for Bitcoin is limited. He emphasizes that the current trend strongly favors the bulls, and trying to short Bitcoin under these conditions is highly risky. The lower demand zone, between $67,000 and $74,000, acts as the worst-case support level if the market sees a sharp drop. But with current trends, such a deep correction seems unlikely in the short term.

Backing up the bullish case is on-chain data that shows more long-term holders are accumulating Bitcoin. According to IntoTheBlock, addresses holding BTC for over one year increased by 1.02%, while short-term holders declined. “Cruisers,” who hold Bitcoin for 1 to 12 months, dropped by 1.48%, and “traders,” who hold for less than a month, fell by 2.76%. This shift from short-term speculation to long-term investing suggests growing maturity and confidence in the Bitcoin market.

The analyst’s view that it’s “illegal” to short Bitcoin is a strong way of saying that the reward for shorting is too low compared to the risk. With the market structure showing strength, especially after consolidating above $100,000, short positions could quickly be wiped out if prices break out again. CrediBull encourages traders to look for long opportunities instead, especially with key resistance levels within reach and upside momentum building.

For Bitcoin to confirm the bullish breakout, it must first clear resistance at $111,941. If it does, the next targets would be $120,000, then $128,000, and possibly $149,000. These levels align with both technical chart patterns and increasing investor confidence. Even if Bitcoin faces short-term pullbacks, the support zones and long-term holder data suggest the asset is in a healthy uptrend.

In summary, market signals and price patterns suggest it is no longer a good idea to short Bitcoin. Analysts like CrediBull Crypto are confident that the next big move is likely upward. With long-term holders increasing and short-term traders stepping away, the stage is set for another leg of Bitcoin’s bull run. Traders who attempt to bet against Bitcoin may find themselves caught on the wrong side of the market. The message is clear: shorting Bitcoin at this point may not be illegal by law, but it certainly is by strategy.