Key Points:
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The weakness in Bitcoin’s price can end with a huge, short liquidation event as the bear becomes overly comfortable.
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New forecasts suggest that market makers are deliberately preparing giant bear traps.
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BTC’s price action has already returned to $113,000, and is liquidating the liquidation block of shorts.
Bitcoin (BTC) is scheduled to have the “next major short squeeze” within a few weeks as market makers will be in charge of the ultimate bear trap.
New forecasts from popular trader Luka this week show that BTC Price Action has repeated breakouts in late 2024.
Bitcoin market maker “satisfies” bears
Bitcoin Exchange Order Books may hold a key to what happens to BTC/USD in the coming weeks.
Focusing on recent price performance, Luka suggests that the lack of fresh highs is not actually a bearish signal.
“We came to the top in mid-August, so look at how the $BTC price action has evolved over the last few weeks. One high was never wiped out,” he writes.
“I think the reason is because the shorts are protected in the short term.”
This theory explains that market makers artificially keep the market in scope and convince short sellers that their bets will be rewarded.
“We’ve seen similar things before, through that large-scale integration phase, when highs weren’t tapped until we actually made a breakout in November.”
The longer this scenario lasts, the more “satisfied” bear becomes. Sets ideal conditions for short squeeze clearing events. Luke concluded:
“This will lead to the next major short queeeze in the coming weeks, and while it may seem counterintuitive, I think it’s a very positive indication that you’re protected right now and won’t wipe out the highs.”
BTC price breakout “Completely confirm”
As reported by Cointelegraph, many market participants are sure that Bitcoin will soon have a new low.
Related: BTC vs “very bearish” gold breakout: 5 things you need to know about Bitcoin this week
$100,000 remains a popular negative side target with debate focusing on phenomena such as bearish divergence towards key indicators.
BTC/USD returns to $113,000 on Friday, with Coinglass data showing a Crypto short liquidation of around $100 million over the last 24 hours.
This was enough to call the end of the revision from the all-time high that began in mid-August.
“Bitcoin has technically fully confirmed its breakout,” popular trader and analyst Rect Capital told X Followers along with the chart update.
“Daily closures and/or retests of the ~$113,000 region (red) ensure that the added trends to benefits continue.”
This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.
