A closely followed crypto strategist thinks that Bitcoin (BTC) is gearing up to liquidate both bulls and bears in the coming days.
Justin Bennett tells his 112,300 Twitter followers that there’s a massive pool of short stops resting above the $30,000 level for BTC.
According to Bennett, it is within the realm of possibility for BTC to briefly trade above $30,000 in order to take out early Bitcoin bears who believe the king crypto will go down in a straight line.
“Let’s see if BTC sniffs out those short liquidations above $30,000 this weekend.”
Although Bennett is predicting a short-term surge for Bitcoin, he believes that BTC will witness a swift corrective move after the rally. The crypto strategist believes that BTC could drop to as low as $26,800 before bouncing.
“Something like this from BTC wouldn’t surprise me after this week’s volatility.
Take shorts, then take longs.
Let’s see.”
Bennett also shares a heatmap of Bitcoin showing that a lot of BTC bulls have placed long positions around the $26,000 price level.
At time of writing, Bitcoin is trading for $29,272.
Looking at the total market cap of all crypto assets (TOTAL), Bennett says that TOTAL is still below the crucial level of $1.18 trillion, suggesting that the broader digital assets market is still struggling to ignite a breakout rally.
“TOTAL is one reason I’m not comfortable longing crypto right now despite BTC closing back above $28,800.
TOTAL is still holding below the $1.18 trillion range highs after the recent deviation.”
At time of writing, TOTAL is hovering around $1.168 trillion.
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