A widely followed crypto strategist believes that Bitcoin (BTC) and crypto are due for a huge upside burst following a massive liquidation event.
On Monday, the crypto market witnessed over $1.58 billion in liquidations, mostly levered long positions, within a 24-hour period amid a slew of bearish developments.
Bitcoin itself plunged to a three-month low of $86,141.
Following the corrective move, pseudonymous analyst Capo tells his 119,452 Telegram subscribers that a big relief rally is in the cards for the crypto market.
“A strong bounce seems likely.”
According to the analyst, the rally will be triggered by a short squeeze, which occurs when a sharp rise in the price of an asset forces traders who had previously sold short to close their positions. Short selling means selling borrowed shares of a stock with the expectation that the price will fall.
But the trader warns that once the short squeeze has run out of fuel, crypto will likely witness a capitulation event that paves the way for rallies to new record levels.
“Still thinking we get a strong short squeeze before the bigger drop comes.”
Looking at Bitcoin, Capo thinks that Bitcoin can rally to $100,000 before capitulating to as low as $80,000 to set the scene for a push to a new all-time high.
At time of writing, Bitcoin is worth $88,329.
Turning to Ethereum, the analyst thinks ETH will follow a similar path before climbing to a new all-time high of $5,000.
“ETH idea.”
Looking at the trader’s chart, he seems to predict that ETH will soar to $3,000, followed by a move below $2,000 to set the stage for a surge to a new record high.
At time of writing, ETH is trading for $2,481.
He also has the same outlook for Solana (SOL), predicting that it would first rally to $185 and plunge to $120 before a subsequent reversal to $310.
At time of writing, SOL is trading at $143.93.
Follow us on X, Facebook and Telegram
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
