Bitcoin Price Analysis: Short Liquidation and Market Dynamics
- Bitcoin price weakness may culminate in a significant short liquidation event as bears grow overly confident.
- A recent forecast indicates that market makers are intentionally setting up a large bear trap.
- BTC price is already back at $113,000, leading to the liquidation of short positions.
Bitcoin (BTC) is on track for its “next major short squeeze” in the coming weeks as market makers establish the ultimate bear trap.
A forecast this week from well-known trader Luca suggests that BTC’s price movements are mirroring the breakout seen in late 2024.
The order books of Bitcoin exchanges could hold crucial insights into the future of BTC/USD, with bulls positioned to gain advantage.
Reflecting on recent price behavior, Luca posits that the lack of new higher highs is not a bearish sign. “Look at how the price action has developed for $BTC over the last couple of weeks, since we topped out in mid-August. Not one single high got swept,” he stated.
This theory suggests that market makers are keeping the market artificially stable to make short sellers believe their positions will be profitable.
“We’ve seen something similar before, back in 2024, all throughout that MASSIVE consolidation phase when the highs never got tapped until we actually had the breakout in November,” the post elaborates, referencing last year’s seven months of stagnant price movement.
The longer this scenario persists, the more “complacent” the bears become, creating favorable conditions for a short squeeze liquidation event. Luca concluded:
As reported, numerous market participants are convinced that Bitcoin will see new lower lows in the near future.
- $100,000 remains a popular target for downside predictions, with discussions surrounding bearish divergences on key indicators.
BTC/USD returned to $113,000 on Friday, with CoinGlass data indicating approximately $100 million in crypto short liquidations over the last 24 hours.
This prompted some to declare the end of the correction from the all-time highs that began in mid-August.
“Bitcoin has technically fully confirmed its breakout,” noted popular trader and analyst Rekt Capital to X followers, accompanied by a chart update.
This article does not offer investment advice or recommendations. Every investment and trading action involves risks, and readers should undertake their own research before making any decisions.
