A popular crypto analyst is anticipating a major relief rally for Bitcoin (BTC) amid uncertainties in the crypto markets.
In a new strategy session, Nicholas Merten tells his 515,000 YouTube subscribers that more people are now willing to buy Bitcoin as sellers of the flagship digital asset have been forced out of the market.
“We do believe that an extended bear market could still play out. We [also] do believe in the reality that there is likely going to be a relief rally in the market like there has been in the past, and it simply has to do with the fact that a lot of sellers have been forced out of the market.
We now likely have more buyers than sellers at these prices.”
From its current price of $21,135, the analyst predicts that Bitcoin may rally to as high as $30,000, a 42% increase.
“If we can get [the] price above these moving averages and turn them into support, after that, we’ve potentially got a major move to the upside, something in the upper $20,000 range, going from $25,000 to $30,000.”
Merten says that the top crypto asset by market cap has been trading sideways for a month now, and it could be poised for a steep rally if it manages to break out of its current channel.
“I don’t want to call it too confidently, but we can get a serious move here and the reason why is because like back in May of 2022, we had a month-long consolidation, very similar here. We’ve been in over a month of consolidation in price.
You got a lot of longs and a lot of shorts in either of these channels [$30,000 and $20,000]. If price starts to go substantially in the other direction, especially getting above this channel [$20,000], you’ve got a whole lot of shorts not just from this channel [$21,000] and also this channel [$30,000] who could very well be taking significant losses… causing a massive short squeeze to the upside.”
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