A leading crypto trader speculates that Bitcoin (BTC) might experience a deceptive downturn around August 28, starting the week. This move, they believe, will pave the way for market makers to initiate a short squeeze, potentially propelling Bitcoin prices to land between $27,000 and $28,300 throughout the following days.
The analyst, CrypNuevo (@CrypNuevo), who routinely provides the “BTC Sunday Update,” boasts a commendable track record for Bitcoin predictions. The insights are primarily rooted in understanding liquidity patterns and market sentiment, aiming to decode potential strategies employed by market makers.
CrypNuevo’s recent analysis hints at a possible deceptive dip, perhaps plunging to the vicinity of $25,300. The intent behind this, as postulated by the analyst, is to entice the retail segment into committing more short positions, thereby amassing greater liquidity on the upward side.
In the event of this decline, CrypNuevo plans to abstain from shorting. The rationale is the anticipation of market makers capitalizing on the accumulated liquidity by triggering a short squeeze. Consequently, Bitcoin might touch peaks nearing $28,300, especially ahead of Thursday’s PCE (inflation report) and Friday’s NFP, according to the analyst.
Possible Descent to $24,000 or Even Lower
While the aforementioned prognosis caters to short-term movements, CrypNuevo suggests a broader strategy at play. Market makers might be eyeing the significant liquidity hovering around the $24,000 benchmark.
Even though Bitcoin’s price has neared this mark, CrypNuevo observes a conspicuous avoidance of this liquidation zone, noting, “I have seen this before.” The speculated objective is to persuade traders into opening long positions, enhancing liquidity. Consequently, when the $24,000 mark is eventually touched, it would maximize impact.
Current Bitcoin Price Movement
Corroborating the trader’s prediction, Bitcoin began the week dropping below the crucial $26,000 support, hovering at $25,926 at the time of reporting, registering a 0.58% decline for the day. Should Bitcoin’s price follow the forecast, it might further decline before experiencing a short-term bullish correction.
Nevertheless, whether Bitcoin aligns with CrypNuevo’s expectations will hinge on ensuing Bitcoin-related events and the prevailing sentiment across the broader cryptocurrency and macroeconomic arenas.
