The popular crypto analyst stated that Bitcoin is poised to trap the bulls with a rally before pulling back.
In a statement on Credible Crypto X, he said he would not be surprised if the leading crypto experienced a new rise:
“It was initially rejected but it wouldn’t be surprising to see it rise once again before the ‘real’ decline begins.”
The analyst emphasized that investors should follow the increases that did not occur due to short-term squeezes.
According to Credible Crypto, the leading cryptocurrency’s recent rise to $38,000 was the result of a short squeeze and set the stage for a new decline.
“What we want to see in these upward movements is not short-term squeezes, but rather upward spot-oriented movements.”
The analyst predicted that Bitcoin would eventually lose its momentum and decline as investors with long positions panicked and liquidated.
“After a long time, we experienced an increase in open positions from the lowest levels. What happened the last time this type of rise occurred? We saw a downward squeeze…
There is also an increase in open positions during the rise. This means that in a scenario where Bitcoin pulls back, we will see some of the long position holders panic, causing the price to drop even faster.”
At the time of writing, Bitcoin is trading at $37,664, according to CoinMarketCap data.
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