While the world’s first cryptocurrency, Bitcoin price is going downwards day by day, one of the closely followed crypto analysts and traders who’s been bearish towards Bitcoin for most of 2022, now has a bullish approach.
An anonymous trader known as Capo informed his 492,100 followers on Twitter that trader activity during bitcoin’s $20,000 drop gave the green signal for a short squeeze. Now, analysts have a positive outlook until BTC reaches the $23,000 level.
Bitcoin At $23k Soon
Whenever traders purchase an asset for a particular price so that they can sell at a lower price to fill up the difference (short) are demanded for buying back the asset as the trend is against their prediction. This method is known as short squeeze.
The trader claims that a short squeeze is still possible as he is bullish until bitcoin re-captures the $23,000 and $23,500 area.
To prove his claim, Capo talks about an August 24 post where he had stated that when Bitcoin hits $23,500, the currency declines towards a new low at $16,000 by mid-September.
At the time of publication, bitcoin is changing hands at $20,009, down 0.95% over the past 24 hours.
Cardano (ADA)
Next, Capo discusses Cardano (ADA), a proof-of-stake blockchain platform. The analyst believes that even Cardano’s ADA will see an upward movement along with Bitcoin before it drops to a lower area.
Currently, Cardano is valued at $0.44 with a slight increase of 0.72% over the past 24 hours.
