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

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.