Crypto Soothsayer Anticipates Explosive Bitcoin U-Turn

• One analyst says that if Bitcoin hits $44,000, it will set off a short squeeze that will force bears to purchase the crypto and send it back above $47,000.
• Bitcoin hit a two-week low today at $41,700 but is recovering despite bullish sentiment such as spot ETFs which have seen close to $18 billion in trading and pushed BlackRock into the top 15 BTC owners.

After exploding to a 52-week high on the back of the approval of the first batch of spot ETFs, Bitcoin lost some of the momentum and dipped to a weekly low earlier today below $42,000. However, according to one analyst, if it recovers the $44,000 level, then it will trigger a short squeeze that pushes it back above $47,000.

BTC trades at $42,890 at press time, around the same price level it was 24 hours ago. However, in that time, it dipped to set an intra-day low of $41,700, the lowest it has been since December 30.

The top crypto’s trading volume characteristically dipped over the weekend to hit $14 billion on Sunday, but it has since regained close to 50% to hit $21.2 billion, although this is still below last week’s average of $40 billion.

According to one analyst, it’s critical for Bitcoin to regain $44,000 if it’s to retest some of the highs of last week. Known to his 365,000 followers on X as Credible Crypto, the analyst noted that this level would lead to a short squeeze that would propel BTC back over $47,000.

If we can get back above 44k shorts should squeeze and take care of the rest, sending us back to 47k+. https://t.co/2L8DBGloq4

— CrediBULL Crypto (@CredibleCrypto) January 12, 2024

A short squeeze is a market phenomenon in which the bears who have shorted an asset are forced to purchase the stock to limit their losses after the price of the asset rises significantly. The analyst believes that the bears’ position would be wiped out if BTC trades above $44,000.

What’s Next for Bitcoin?

Credible Crypto has been adamant that Bitcoin’s dip would be temporary and would remain above the low $40,000s. On Friday, he told his followers:

Current thoughts on BTC are much the same as what I discussed in my last video update, prior to the ETF approval. That is- a quick dip down to low-mid 40k’s would make sense but I think anyone expecting much more than that will be disappointed.

He believes that the correction is temporary and that it’s a pitstop on Bitcoin’s path to a higher record, as shown in the graph below (the blue line shows the predicted price path).

As Bitcoin strives to recapture its highs, investor sentiment has dipped from a pre-ETF approval high of 76, which is squarely in the “greedy” category to around 52, which indicates neutral sentiment. This is the first time since November that BTC sentiment has been neutral, with the ETF anticipation keeping it at greedy for two months.

Despite the market dip, BTC interest by institutional investors remains strong. Since the ETFs launched, over $17.5 billion has changed hands. Coinbase has been a big beneficiary, recording the highest trading volume since November 2022, just before the FTX collapse dealt a massive blow to the sector.

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