A widely followed analyst believes that Bitcoin (BTC) is setting up for a massive short squeeze that could catapult the king crypto to levels unreached in over six months.
Pseudonymous crypto strategist Kaleo tells his 554,400 Twitter followers that Bitcoin is likely gearing up for a rally to $30,000, a price level it hasn’t seen since June 2022.
“$30,000 is a magnet.”
At time of writing, Bitcoin is switching hands for $21,319, suggesting an upside potential of over 40% should BTC hit Kaleo’s target.
Although the crypto strategist is bullish on Bitcoin, he believes the path toward his target of $30,000 would not be a straight line.
“Expecting one more wick beneath $20,000 before we see it. Bit of chop/accumulation beneath the high time frame trend before the god candle makes sense. The god candle will be here soon enough though.”
According to the crypto analyst, the move below $20,000 would likely trigger the entry of short positions, making Bitcoin ripe for a short squeeze.
A short squeeze happens when traders who borrow an asset at a certain price in hopes of selling it for lower to pocket the difference are forced to buy back the assets they borrowed as momentum moves against them, triggering further rallies.
Kaleo also believes the brief pullback is imminent as Bitcoin has rallied by over 23% in just seven days.
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