A closely followed cryptocurrency trader thinks that Bitcoin (BTC) will likely witness an eruption toward the $30,000 price level.
Pseudonymous analyst Loma tells his 195,000 Twitter followers that a strong short squeeze could fuel BTC’s rally toward his target.
A short squeeze happens when traders who borrow an investment at a certain price in hopes of selling it for lower to pocket the difference are forced to buy back the assets they borrowed as momentum moves against them, triggering further rallies.
Reveals Loma,
“ Price at support.
No momentum.
Both sides attempting to position themselves here for the following big move.
Expects a squeeze ( numerous liquidity up to monthly open).”
Despite the fact that Loma is predicting a big rally for BTC, he reveals that the surge will likely take place after Bitcoin (BTC) witnesses a deep corrective move en route to $22,000.
“If you had to bet, what do you think the Bitcoin chart would look like next month?
I start.”
In the meantime, fellow analyst DonAlt reveals that Bitcoin’s refusal to completely break down after respecting $30,000 as resistance is a positive indication for the cryptocurrency king. Reports by the trader who caught this year’s cryptocurrency rally, a couple of weeks of consolidation could create a base for Bitcoin to move higher.
“ Bitcoin update:
$27,400 has lost its relevance. We’ve been chopping as well hard right below it.
Leverage plays are shit now, no clear setup anywhere owing to chop
That stated, the longer this takes the better for bulls, another week or two and I’d think we’ll meander back into the range ($27,400 – $29,400).”
At the moment of writing, Bitcoin (BTC) is trading for $27,167.
Generate Image: Midjourney
