Bitcoin Price Is Close To $20.4K

Hut 8

With a significant increase of more than 3% & 9%, respectively, the price of Bitcoin and Ethereum has once more surpassed their immediate resistance. The most recent increase may be due to intense selling pressure that has been building over the past week in the crypto industry.

While some analysts think the upswing may immediately run into opposition, other well-known analysts think it is only the start of a short squeeze.

Bitcoin Reaches ‘Short Squeeze’ Trigger Zone

When there are numerous large short transactions placed and the price is likewise falling southward, a short squeeze occurs. Therefore, a massive increase in buying volume is induced to counteract the negative effect, resulting in the liquidation of short positions and an increase in price.

One of the well-known analysts predicts that a sudden short squeeze is quickly arriving for Bitcoin, Ethereum, and Cardano.

When the asset was slightly under $20,000, the analyst had previously set price targets for Bitcoin (BTC) at that time. He predicts that the price of Bitcoin might surpass $20,000 before skyrocketing to $23,000 before plummeting to $16,000. Along with Bitcoin (BTC) and Cardano (ADA), it is also predicted that Ethereum would reach $1800 before dropping sharply below $900 to reach levels around $825.

Collectively, the expert correctly forecasted the most recent drop since he is still very pessimistic about the cryptocurrency markets. The analyst predicts that the ADA price may soar beyond $0.52 and then sharply decline to $0.31 over the course of the next few days, setting up a similar trap for the Cardano bulls as well. The latest price increase could signal the start of a short-squeeze, therefore the bulls must trade cautiously because a massive trap may have been set.