FacebookTwitterLinkedInTelegramCopy LinkEmail
Technical Analysis

Bitcoin: Are We In For a Short Squeeze – Analyst Weighs In

Bitcoin: Are We In For a Short Squeeze – Analyst Weighs In

A prominent figure in the crypto trading community has expressed optimism about Bitcoin's (BTC) potential to surge towards the $30,000 mark.

Loma, a respected analyst with a substantial following on Twitter, believes that a strong short squeeze could be the catalyst behind Bitcoin‘s upward movement.

Loma notes that the current market situation shows a lack of momentum, with both sides positioning themselves for the next significant development. He anticipates a squeeze, indicating that there is a substantial amount of liquidity leading up to the monthly open.

However, Loma also predicts that Bitcoin will experience a significant corrective move before the anticipated rally, with a potential drop to $22,000. In a speculative question posed to his audience, Loma asks what they think the BTC chart will look like in the coming month.

READ MORE: Banking Landscape Faces Transformation: Janet Yellen Discusses Mergers

Another analyst, DonAlt, shares a similar sentiment, highlighting Bitcoin’s resilience in avoiding a complete breakdown after encountering resistance at $30,000. DonAlt, who accurately predicted this year’s crypto rally, suggests that several weeks of consolidation could establish a solid foundation for Bitcoin to make further upward progress.

DonAlt further notes that the relevance of the $27,400 price level has diminished, as the market has been characterized by choppy price action just below it. The analyst advises against leverage plays due to the current lack of clear setups caused by the choppy conditions.

Nevertheless, DonAlt believes that an extended period of consolidation would favor the bulls, speculating that within another week or two, Bitcoin may regain its range between $27,400 and $29,400.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

Learn more about crypto and blockchain technology.