Analysts are predicting an abrupt bullish trend reversal in Bitcoin, saying BTC could experience a short squeeze after reclaiming this level
A closely followed crypto strategist believes Bitcoin (BTC) is on the verge of a major rally to a new two-year high.
Pseudonymous analyst Credible Crypto tells his 364,900 followers on social media platform X that Bitcoin is primed for a bullish reversal.
According to the analyst, BTC's abrupt corrective move to a seven-day low of $42,449 has driven out overleveraged traders and positioned BTC to rise to $55,000 – a level last seen in December 2021.
“Lows were hit, funding was reset back to neutral, the perpetual premium remained unchanged again, and there was something of an open interest flush through some leveraged long positions. Here I would like to look for a reversal back to the upside.”
Source: Credible Crypto/X
Credible Crypto notes that Bitcoin could experience a short squeeze if BTC rises above $44,000.
A short squeeze occurs when traders who borrow an asset at a certain price in the hopes of selling it at a lower price to pocket the difference are forced to buy back the borrowed assets when momentum moves against them , which triggers further rallies.
Says Credible Crypto,
“If we can get back above $44,000, the short sellers should apply pressure and take care of the rest so we can get back above $47,000.”
Credible Crypto is not the only analyst who believes BTC can spark a rally above $47,000. Trader Justin Bennett tells his 110,700 followers on social media platform X that Bitcoin is currently consolidating in a wide range.
“BTC just tested $41,240 support.
The question still remains whether it can reclaim $44,000 if it rises to $48,000.
Tied to range for now.”
Source: Justin Bennett/X
At the time of writing, Bitcoin is worth $43,052.
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