Thereย is a compelling forecast in the air as a renowned cryptocurrency trader anticipates a vigorous boost in Bitcoinโs value to the $30,000 mark. Inmortal, the pseudonymous analyst suggests that a potent short squeeze mayย be the primary driver behind this Bitcoinย (BTC) rally.
Short Squeeze โ The Rallyโs Main Engine
Short squeezes have a critical role in such positiveย tendency predictions. For the uninitiated, this market phenomenon occurs when traders borrowing an investment to sell it at a lower priceโaiming toย win from the price differenceโfind themselves compelled to buy back the borrowed assets. This is a response to the market momentum turning against them, causing further price rallies.
Asย ofย now, Inmortal observes the market at a critical point. โ Price at support. No momentum. Both sides attemptingย to position themselves here for theย following big move,โ he comments, drawing attention to theย capacity for a squeeze which would drastically increase BTCโs liquidity up to the monthly open.
A Potential Dip Before the Surge
Althoughย while Inmortalโs predictions point toward a wholeย lotย of Bitcoin rally, he does not ignore the likelihoodย of a sizeable correction beforehand. Reportsย by his analysis, Bitcoinย (BTC) canย potentially see a corrective movement pushing itsย price down to around $22,000 before any upward surge takes place.
Understanding the Market Indicators
Inmortalโs forecast aligns with numerous indicators. BTCโs price fractal hints at an impending breakout, although theย pastย few price increase on May 22 met with selling pressures, resulting in a 3 percent fall. The Relative Strength Index (RSI) likewise displayed a rejection after touching the mean level.
The Awesome Oscillator (AO) is asย ofย now retesting the midpoint. A breakthrough of the $26,555 levelย ofย support could lead to a slide down to $25,175, BTCโs immediate foothold. In the worst-case scenario, Bitcoin could fall as far as the $23,052 barrier, signifying losses of 6 percent and 14 percent respectively from theย present $26,761 price level.
Nonetheless, this pessimistic outlook mayย be invalidated if Bitcoin decisively turns the $28,051 hurdle into a levelย ofย support, potentially propelling it up to the $30,287 mark.
Andย once of writing thisย post, Bitcoinย (BTC) was currentlyย worth $26,713.
