A closely followed crypto strategist thinks that Bitcoin (BTC) is gearing up to liquidate both bulls and bears in the coming days.
Justin Bennett tells his 112,300 Twitter followers that there’s a massive pool of short stops resting above the $30,000 level for BTC.
According to Bennett, it is within the realm of possibility for BTC to briefly trade above $30,000 in order to take out early Bitcoin bears who believe the king crypto will go down in a straight line.
“Let’s see if BTC sniffs out those short liquidations above $30,000 this weekend.”
Although Bennett is predicting a short-term surge for Bitcoin, he believes that BTC will witness a swift corrective move after the rally. The crypto strategist believes that BTC could drop to as low as $26,800 before bouncing.
“Something like this from BTC wouldn’t surprise me after this week’s volatility.
Take shorts, then take longs.
Let’s see.”
Bennett also shares a heatmap of Bitcoin showing that a lot of BTC bulls have placed long positions around the $26,000 price level.
At time of writing, Bitcoin is trading for $29,272.
Looking at the total market cap of all crypto assets (TOTAL), Bennett says that TOTAL is still below the crucial level of $1.18 trillion, suggesting that the broader digital assets market is still struggling to ignite a breakout rally.
“TOTAL is one reason I’m not comfortable longing crypto right now despite BTC closing back above $28,800.
TOTAL is still holding below the $1.18 trillion range highs after the recent deviation.”
At time of writing, TOTAL is hovering around $1.168 trillion.
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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 loses 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.
Featured Image: Shutterstock/Emanuel Bustos
