Bitcoin Poised for Short Squeeze Before Deeper Drop, Analyst Warns

A well-known crypto analyst predicts that Bitcoin and the broader crypto market are on the verge of a major breakout following a wave of liquidations.

Over $1.58 billion worth of leveraged positions were wiped out in a single day, pushing Bitcoin down to $86,141—its lowest level in three months.

Despite the downturn, the analyst, known as Capo, told his Telegram audience that a sharp rebound is highly probable.

He suggests that this recovery will be driven by a short squeeze, where a sudden price jump forces traders betting against the market to close their positions, fueling further upward momentum.

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However, he cautions that once this surge loses steam, another significant drop could follow before the market sets the stage for new all-time highs.

Capo anticipates Bitcoin climbing to $100,000 before potentially retracing to $80,000, paving the way for a fresh bullish cycle.

As for Ethereum, he expects it to mirror Bitcoin’s pattern, eventually surging to $5,000.

Kosta Gushterov