Top analysts are predicting a strong short squeeze for Bitcoin to $30,000 — but there’s a major catch

A closely followed crypto trader believes Bitcoin (BTC) is likely to see a breakout towards the $30,000 price level.

Pseudonymous analyst Loma tells his 195,000 Twitter followers that a strong short squeeze could propel Bitcoin’s rally towards its target.

A short squeeze occurs when traders who are borrowing an asset at a certain price hoping to sell it at a lower price to make up the difference are forced to buy back the borrowed assets if momentum moves against them , triggering further rallies.

Says Loma

“Price with support.

No momentum.

Both sides are trying to position themselves here for the next big step.

Expected to be tight (lots of liquidity until month open).”

Source: Loma/Twitter

Although Loma predicts a major rally for BTC, he says the surge is likely to come after Bitcoin experienced a deep corrective move en route to $22,000.

“If you had to bet, what do you think the BTC chart would look like next month?

I start.”

Source: Loma/Twitter

Meanwhile, fellow analyst DonAlt says that BTC’s refusal to fully collapse as resistance after hitting $30,000 bodes well for the crypto king. According to the trader who witnessed this year’s crypto rally, a few weeks of consolidation could set a base for BTC to surge.

“BTC update:

$27,400 has lost its relevance. Just below we chopped too hard.

Leverage plays suck now, there is no clear setup due to chop anywhere

However, the longer this goes on the better for the bulls, another week or two and I think we will get back into the range ($27,400-$29,400).”

Source: DonAlt/Twitter

At the time of writing, Bitcoin is trading at $27,167.

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