This is a technical analysis post by Coindesk analyst and chartered market technician Omkar Godbole.
An American-listed geared anti-strategy (Mstr) Exchange-Traded Fund (ETF) increased last week, hinting at a potential bearish prospect of Bitcoin (BTC) and Mstr.
Defiance Daily Target 2x Short Mstr ETF, listed under Ticker SMST on Nasdaq, rose 19%, its best benefit since the end of February, according to data source trading. It was also the third consecutive weekly gain, the first such instance since ETF debuted last August.
That’s not all the 19% overvoltage pierced the Bearish Trendline, representing the meltdown from September 2024 heights of about $ 2,368 to under $ 20. The so -called Bullish Breakout is clearly visible on a long scale weekly candlesticks. The log scale is used for assets that have experienced exponential price movements, as is the case with SMST.
Macro level Trendline breakout is supported by a powerful bullish signal in the form of a Bullish Marubozu light, indicating that buyers were in fixed control last week and that momentum is now resolute upward. The Bullish Marubozu lights are identified by a prominent green body and slightly-to-ning wicks (shadows), indicating the buyer’s dominance.
The overall takeaway for dealers is that smest suggests a dour view of strategy and Bitcoin. Strategy is the largest listed bitcoin holder, which has 628,791 BTC, worth over $ 71 billion, from writing.
The 2x short ETF seeks to deliver daily investment results that are -200%or minus 2x, the daily percentage change in the Mstr Ak share price. The fund represents a bearish geared bet on Mstr.
ETF has seen a net flow of 16.3 million in the last six months, according to Data Source Vettafi. Meanwhile, its Bullish Peer, the 2x long MSTR Fund (SMST) has seen net outflow of over $ 275 million.
Read more: Bitcoin Etfs Bleed Millions for 4th Equal Day, as American Stagflation Fears weigh on BTC and Stores
