A closely followed crypto trader believes that Bitcoin (BTC) will likely witness an eruption toward the $30,000 price level.
Pseudonymous analyst Loma tells his 195,000 Twitter followers that a strong short squeeze could fuel Bitcoin’s rally toward his target.
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 Loma,
“Price at support.
No momentum.
Both sides trying to position themselves here for the next big move.
Expects a squeeze (lots of liquidity up to monthly open).”
Although Loma is predicting a big rally for BTC, he says that the surge will likely take place after Bitcoin witnesses a deep corrective move en route to $22,000.
“If you had to bet, what do you think the BTC chart would look like next month?
I start.”
Meanwhile, fellow analyst DonAlt says that BTC’s refusal to completely break down after respecting $30,000 as resistance is a good sign for the crypto king. According to the trader who caught this year’s crypto rally, a couple of weeks of consolidation could create a base for BTC to move higher.
“BTC update:
$27,400 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 ($27,400 – $29,400).”
At time of writing, Bitcoin is trading for $27,167.
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