Bitcoin Could Experience a Short Squeeze to $27,000 Before a Massive Liquidation
According to a renowned crypto trader on X (formerly Twitter), Bitcoin (BTC) may be gearing up for a short squeeze that could push its price to the $27,000 range in the coming days. This anticipated short-term pump would be followed by a significant liquidation event, potentially driving the price down to below $24,000.
The trader, known as CrypNuevo, has demonstrated a high level of accuracy in their technical analysis, as evidenced by their previous prediction of a “fake dump” for Bitcoin’s price before a short squeeze, which came true on August 28.
Contrary to the recent losses in the cryptocurrency market, CrypNuevo believes that Bitcoin market makers are preparing for a “fake pump” to $26,900 before initiating a further dump to liquidate long positions in the $24,000 price zone, possibly dropping as low as $23,000.
Market Makers Preparing for $24,000 Liquidation Zone
Interestingly, CrypNuevo had been anticipating this dump for a few weeks, suggesting that market makers and Bitcoin whales have been strategically aiming for sub $24,000 price targets. The liquidation zones in this range have seen significant increases in the past couple of weeks, particularly after the ETF news pump on August 29.
Bitcoin Price Analysis
Currently, Bitcoin is trading at $25,671, experiencing a 0.5% loss for the day. It is currently testing the price support zone highlighted by CrypNuevo before potentially undergoing a small pump to $26,900, followed by a substantial dump to $23,000.
The realization of CrypNuevo’s predictions will depend on further developments related to Bitcoin, as well as the overall sentiment in the wider crypto and macroeconomic landscape. The upcoming week is expected to be highly volatile, especially with the release of the United States CPI data and the Delaware Bankruptcy Court ruling on FTX liquidations on September 13.
Hot Take: Bitcoin May Witness a Short-Term Pump Followed by a Major Liquidation
According to CrypNuevo, a well-known crypto trader, Bitcoin could experience a short squeeze that drives its price to $27,000 in the next few days. This surge would be followed by a significant liquidation event, potentially pushing the price down to below $24,000. CrypNuevo has a track record of accurate technical analysis, as demonstrated by their previous prediction of a “fake dump” before a short squeeze. In contrast to recent losses, CrypNuevo believes that Bitcoin market makers are preparing for a “fake pump” to $26,900 before initiating a dump to liquidate long positions in the $24,000 range. Market makers and Bitcoin whales have been strategically targeting these sub $24,000 price levels, as evidenced by the increasing liquidation zones. Bitcoin’s price movement will depend on future developments and the overall sentiment in the broader crypto and macroeconomic landscape. The upcoming week is expected to be highly volatile, with important events such as the release of US CPI data and the Delaware Bankruptcy Court ruling on FTX liquidations on September 13.
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