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 $30,000 mark.
Loma, a respected analyst with a substantial following on Twitter, believes that a strong short squeeze could be the catalyst behind Bitcoin‘s upward movement.
Price at support.
No momentum.
Both sides trying to position themselves here for the next big move.Expects a squeeze (lots of liq up to monthy open)$BTC pic.twitter.com/4YVMGlzsHH
— Inmortal (@inmortalcrypto) May 22, 2023
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.
If you had to bet, what do you think the $BTC chart would look like next month?
I start. pic.twitter.com/6uvmuFkxnO
— Inmortal (@inmortalcrypto) May 22, 2023
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.
$BTC update:
$27400 has lost its relevance, we've been chopping too hard right below it.
Leverage plays are shit now, no clear setup anywhere due to chop
That said the longer this takes the better for bulls, another week or two and I'd think we'll meander back into the range pic.twitter.com/AFM8wQIxyg
— DonAlt (@CryptoDonAlt) May 22, 2023
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.
