Top analysts outline what’s next for Bitcoin after a short aggressive squeeze to $40,000
A few closely-watched crypto strategists are mapping out what awaits Bitcoin after BTC surged from $35,000 to $40,000 in just 48 hours.
Pseudonymous crypto analyst Credible tells his 311,800 Twitter that an “aggressive short press” was the catalyst for Bitcoin’s strong rebound over the past two days.
“I had an aggressive short press yesterday. Not sure if it will hold, but if it does, resistance at $42,000. If we go back to the pressure, then in my opinion we are basing between $29,000 and $32,000 as per my last post. At any time, a period close high above monthly resistance indicates confirmation of a bottom.
A short squeeze occurs when traders who borrow units of an asset at a certain price in the hope of selling lower to pocket the difference (short) are forced to buy back as the trade moves against their bias.
In the case of Bitcoin, traders were betting that BTC would break $35,000 after Russia announced its military action against Ukraine. Instead, the king of crypto rallied, forcing traders who were short of BTC to buy over $300 million worth of Bitcoin on Feb. 24, fueling the rally (short squeeze) to $40,000 on Feb. 26. February.
With Bitcoin managing to hold support at $35,000, fellow crypto analyst Smart Contracter tells his 205,200 Twitter followers that BTC has now established a short-term range between $35,000 and $44,000.
“Very big BTC reversal candle today. Not sure if this is the low or not, but it should be a tradeable range for a little while.
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