Analyst Predicts Abrupt Bitcoin Bullish Reversal, Says BTC May Witness Short Squeeze After Reclaiming This Level

By The Daily Hodl January 16, 2024 In Bitcoin
Source: Credible Crypto/X

A closely followed crypto strategist believes that Bitcoin (BTC) is on the verge of a big rally to a new two-year high.

Pseudonymous analyst Credible Crypto tells his 364,900 followers on the social media platform X that Bitcoin is primed for a bullish reversal.

According to the analyst, BTC’s abrupt corrective move to a seven-day low of $42,449 flushed out overleveraged traders, putting BTC in a position to rally to $55,000 – a level last seen in December 2021.

“Lows taken, funding reset back to neutral, perpetual premium flat again, and a bit of an open interest flush from some levered longs. This is where I want to watch for a reversal back to the upside.”

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Source: Credible Crypto/X

Credible Crypto notes that Bitcoin could witness a short squeeze if BTC moves above $44,000.

A short squeeze happens when traders who borrow an asset 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.

Says Credible Crypto,

“If we can get back above $44,000, shorts should squeeze and take care of the rest, sending us back to $47,000+.”

Credible Crypto is not the only analyst who believes that BTC can ignite a rally above $47,000. Trader Justin Bennett tells his 110,700 followers on the social media platform X that Bitcoin is currently consolidating within a wide range for now.

“BTC just tested $41,240 support.

Still a matter of whether it can reclaim $44,000 for a run at $48,000.

Range-bound for now.”

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Source: Justin Bennett/X

At time of writing, Bitcoin is worth $43,052.

Generated Image: Midjourney

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