Bitcoin (BTC) started the new year well and received psychological support one by one. However, the momentum slowed and slumped below $21,000 from the yen. Analysts are predicting Bitcoin’s next move, and one analyst is warning of a ‘short squeeze’.
“Bitcoin prepares for a big ‘short squeeze’”
The crypto analyst, nicknamed Kaleo, believes that Bitcoin (BTC) is poised for a major ‘short squeeze’ that could launch the cryptocurrency to levels unattainable for more than six months. The analyst says Bitcoin will likely rise to $30,000, a price level it hasn’t seen since June 2022. “$30,000 attracts like a magnet,” Kaleo says.
At the time of writing, Bitcoin is trading at $20,775. If BTC hits Kaleo’s target, there is a potential for an increase of over 40%. While the crypto analyst is optimistic about Bitcoin, he says the path to his $30,000 goal will not be a straight line. In this context, Kaleo makes the following statement:
We expect another wick under $20,000 before we see it. There must be some cut/accumulation below the higher time frame trend before the god candle makes any sense. The God candle will be here soon.
According to the crypto analyst, the move below $20,000 will likely trigger the entry of shorts, making Bitcoin ripe for a ‘short squeeze’. Kaleo also believes that the short pullback is imminent as Bitcoin has rallied over 23% in just seven days. In this regard, he warns, “The bear trap is coming soon.”
Leading crypto heading to $30,000?
According to AvaTrade analyst Naeem Aslam, $30,000 could be the decisive level for Bitcoin bulls. cryptocoin.comAs you follow, Bitcoin has been on an upward trajectory ever since, after dropping to just over $15,000 from its all-time high of around $69,000 in November. The leading crypto is currently trading below $21,000.
However, according to the analyst, Bitcoin could reclaim this $30,000 level. Also, if it can stay above that, it could instill enough faith in the investor to fuel another bull run. The continued crossing of the psychologically important threshold could accelerate large-scale capital inflows into cryptocurrencies. As a result, it could initiate a rapid rise in prices, pushing Bitcoin on its way to new historic highs.
However, breaking the symbolic hurdle may prove more challenging than some bulls had hoped. Aslam expressed his optimism about Bitcoin’s recent recovery. He warned, however, that the bulls are not out of danger yet. While traders remain positive after the successive daily price spikes of BTC, investors are still uncertain whether cryptocurrencies will be able to maintain the momentum through 2023. Also, the crypto market generally tends to outperform in January. This means that this rally may not be sustainable.
Mike McGlone: Bitcoin may have bottomed out
Bitcoin has been trading above the $20,500 level for at least four days in a row as it continues to provide broader bull market momentum. Renowned Bloomberg Senior Commodity Strategist Mike McGlone believes, based on the recent price action, that BTC has finally hit the bottom. McGlone says the leading coin may have bottomed out or formed a bouncing bear pattern. He also notes that Bloomberg is currently biased towards both. According to him, there seems to be a correlation between the bottom achieved in 2019 when BTC fell to $5,000.
As the analyst pointed out, there is a significant difference between the 2019 low and the current price increase that could further assist the price increase. This difference is due to the Federal Reserve still tightening its monetary policy and Fed Funds Futures rising 3.5%. His argument consists of the fact that Bitcoin’s recent rate of increase has a different strength against interest rate increases of the coin.
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