While Bitcoin (BTC) and the rest of the cryptocurrency market are currently in a state of calm, widely-followed anonymous crypto analyst and trader Loma believes that this tranquility will soon be shattered. The analyst predicts that the prominent cryptocurrency is on the verge of an explosion towards the $30,000 mark.
Bitcoin Expects a Strong Short Position Compression
Anonymous crypto analyst and trader Loma anticipates a powerful short squeeze, an event that could propel Bitcoin’s rise towards $30,000. A short squeeze occurs when traders, who borrowed to sell short at a certain price in hopes of profiting from the difference if the asset’s price falls, are forced to buy back at a higher price if the momentum moves against them, triggering a boost in the upward pressure.
In his BTC analysis, Loma states, “The price is at support. There’s no momentum. Both sides are positioning themselves for the next big move. I’m expecting a short squeeze, hence a significant influx of liquidity by the time the monthly candle opens.”
Though Loma is forecasting a major rally for BTC, he suggests that the anticipated volatility might only arrive after the top cryptocurrency undergoes a significant correction down to $22,000.
Analyst Expects a Rise to $29,400 in 1 or 2 Weeks
Conversely, well-followed anonymous crypto analyst and trader DonAlt predicts a rise towards $29,400 within a week or two. After BTC failed to break decisively above $30,000, he considers this a positive sign for the leading cryptocurrency. Capturing the rally at the start of the year, DonAlt turned the rally into profitable gains. He now expects a weeks-long accumulation phase to set a foundation for Bitcoin to ascend further.
Unable to maintain the $27,400 support, the crypto market is experiencing sharp declines just below. Leveraged plays are in a dire state, and due to traders being liquidated, it’s impossible to give a clear target anywhere. However, DonAlt maintains that “the longer the current situation lasts, the better it is for the bulls. I believe we’ll be returning to the range between $27,400 and $29,400 in one or two weeks.”
