Crypto trader Ansem has shifted to a bearish outlook for Bitcoin and Ethereum, citing a break in their mid-timeframe trends. He warns that both assets could see accelerated declines if they drop below $82,000 and $2,400 respectively. Ansem notes that current market sentiment is the most negative he has observed in approximately nine years.
The trader attributes his caution to technical patterns in the stock market, specifically pointing to parabolic tops in AI-related stocks. He highlights that major tech companies are stalling at record highs and that a recent breakout in the Invesco QQQ fund has failed. Additionally, he questions the sustainability of AI revenue, noting that high training costs have yet to translate into significant profits.
Macroeconomic factors are also contributing to market pressure, with a Federal Reserve rate decision scheduled for October 28. Ansem anticipates significant volatility throughout the fourth quarter for both crypto and equity markets. He suggests that the current environment makes bullish onchain positions a contrarian stance.
Despite his short-term bearish view, Ansem maintains a positive long-term outlook for Bitcoin. He believes that specific onchain projects can still perform well if developers focus on building functional protocols. He emphasizes that token price growth depends on tangible development work rather than speculative trading.
