The crypto strategist who accurately called Bitcoin’s collapse earlier this year says rallies are in sight for both BTC and Ethereum (ETH).
The pseudonymous analyst known in the industry as Capo tells his 559,600 Twitter followers that “it’s time” for Bitcoin to make move as he believes crypto bears are providing the fuel for a rally.
“Price action looking bullish. Heatmaps looking bullish…
All I see is a lot of shorts that should be squeezed. Shorting support is not a good idea. Send it to $21,000.”
A short squeeze happens when traders who borrow units of an asset at a certain price in hopes of selling them for a lower price to pocket the difference are forced to buy assets back as the trade moves against their bias.
Data from market analytics firm Coinglass show that traders have accumulated $3.63 billion worth of short positions in the last 24 hours at time of writing.
Currently, Bitcoin is swapping hands for $19,453, up 1.70% on the day.
Looking at Ethereum, the crypto analyst believes ETH is gearing up for a rally above $1,400, a price level which he says has “untapped liquidity.”
“Liquidity game.”
Traders often look for areas of high liquidity as they believe that investors with large positions will influence the price to move toward that area to easily find buyers or sellers.
At time of writing, Ethereum is trading at $1,362, a 3.92% increase on the day.
As for XRP, Capo warns that the sixth-largest crypto by market cap is likely poised for a steep correction toward his target of $0.17.
“XRP main scenario.”
At time of writing, XRP is valued at $0.467, up a little over 1% in the past 24 hours.
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