Cryptocurrency analyst Credible CryptoBitcoin $58,845He shared two possible scenarios that could follow as Bitcoin reaches new highs. The analyst argued that Bitcoin’s market structure is shaping up to be a difficult situation for investors who are bearish.
Bears Are Accumulating Liquidity
BitcoinAs the pair continues to form lower highs, bearish investors are accumulating liquidity by opening large short positions. Credible Crypto noted that this could be a scam to appease the bears.
Possibility of Short Squeeze
According to the analyst, this increase in liquidity could pave the way for a major rally when the price action turns against the bears. The bears’ positions could be suppressed by a sudden price increase, contributing to the upward movement of the market. Credible Crypto said the following about this scenario:
Just as we see price being pulled down by liquidity accumulation on lower timeframes, the same mechanics pull us up on higher timeframes. Repeated, marginal lower highs and defended highs on each rally eventually prime the liquidity for a major breakout. We are essentially feeding the bears to checkmate them with a single fast green candle when the time is right.
Possible Price Scenarios for Bitcoin
According to the chart shared by Credible Crypto, Bitcoin could either fall to around $45,000 or drop to $55,000 and then start a rally above $80,000. The analyst stated that the current structure of the market is open to such movements.
Bitcoin marketThese possible scenarios stand out as developments that investors should follow closely. The current dynamics of the market may be similar to those experienced before major movements. Therefore, it is important for investors to closely follow market movements and analysts’ views.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
