A closely watched crypto strategist believes Bitcoin (BTC) is on the cusp of a major rally to a new two-year high.
Pseudonymous analyst Credible Crypto tells his 364,900 followers on social media platform X that Bitcoin is poised for a bullish reversal.
According to the analyst, BTC’s abrupt correction to a seven-day low of $42,449 wiped out over-indebted traders, putting BTC in a position to rise to $55,000 – a level last seen in December 2021.
“The bottom has been reached, the financing has been reset to neutral, the perpetual premium is flat again and there is a slight open interest flush from a number of levered longs. This is where I want to look for a turnaround to the upside.”
Credible Crypto notes that Bitcoin could witness a short squeeze if BTC moves above $44,000.
A short squeeze occurs when traders who borrow an asset at a certain price in the hope of selling it at a lower price to pocket the difference are forced to buy back the borrowed asset when momentum turns against them , triggering further rallies.
Say Credible crypto,
“If we can get back above $44,000, shorts should do the rest and send us back to $47,000+.”
Credible Crypto isn’t the only analyst who believes BTC can spark a rally above $47,000. Trader Justin Bennett tells his 110,700 followers on the social media platform
“BTC just tested $41,240 support.
It’s still questionable whether it can recover $44,000 for a run at $48,000.
Limited to range for now.”
At the time of writing, Bitcoin is worth $43,052.
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Generated image: Midjourney