A widely followed crypto analyst says that Bitcoin (BTC) is gearing up to bait BTC bulls with another rally to the upside before eventually retracing.
In a new strategy session, pseudonymous crypto trader Credible Crypto tells his 354,400 followers on the social media platform X that he would not be surprised if the king crypto has another surge before it is flushed out.
“Initial rejection here but would not be surprised to see us push back up one more time to take those equal highs before the ‘real’ flush down begins.”
In an accompanying video update, Credible Crypto further explains his stance, saying that traders should be watching for BTC bursts to the upside that aren’t caused by short squeezes.
According to the trader, the top crypto asset by market cap’s recent rise to $38,000 was the result of a short squeeze that has since finished, setting the stage up for an upcoming dip.
“What we want to see on these moves to the upside that we can take more seriously, not necessarily short squeezes but rather spot-driven moves to the upside. Moves to the upside that doesn’t necessarily require shorts being forced to close to get that type of momentum.”
The analyst then says that he eventually envisions BTC losing momentum and coming back down due to traders with long positions panicking and liquidating.
“For the first time in a long time, we’ve had a significant rise in open interest from our lows. The last time we had this sort of rise off the lows, what happened? We saw a squeeze right back down…
So again, we have a rise in open interest on the move up, which is primarily long [traders] jumping in…
What that means is if [BTC’s] price can be forced back down… we’re probably going to see some of these longs start to panic and start to close and that forces [the] price down even faster.”
Bitcoin is trading for $37,752 at time of writing, a fractional decrease during the last 24 hours.
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